Mike Flaum, chief executive of Log Scale Investments, said Strategy’s stock could perform “massively” better than Bitcoin during the next cryptocurrency bull market, while discussing the company’s preferred securities, capital structure and relationship with its Bitcoin holdings.
Strategy’s preferred shares and Bitcoin exposure
Speaking with Bitcoin Magazine, Flaum examined Strategy’s “Stretch” preferred security and the company’s plan to issue daily dividends. He argued that a return of Stretch to par value could create conditions for Strategy to restart Bitcoin purchases by issuing the security at a higher level.
Par value is the stated value assigned to a preferred security. Flaum’s comments focused on how the price and terms of Strategy’s preferred shares can affect the company’s ability to raise capital and add to its Bitcoin treasury. He also compared Bitcoin-backed preferred securities with U.S. Treasury bonds in a discussion aimed at the needs of retirees, without presenting the comparison as investment advice.
Strategy is a publicly traded company whose corporate-finance strategy is closely tied to holding Bitcoin. Its capital stack includes common equity and preferred securities, meaning investors in different parts of the structure can have different claims and payment terms. Flaum also discussed Strive’s SATS offering and whether its oversubscription represented genuinely new money entering the market.
Volatility, risk and valuation
A central theme of the interview was the distinction between volatility and risk. Flaum said he views large price movements differently from the possibility of a permanent loss or impairment of capital. He also addressed why Strategy’s share price had not kept pace with the value of its Bitcoin holdings.
The discussion introduced several measures of mNAV, or market net asset value. These measures compare a company’s market value with the value of its Bitcoin and other relevant assets, with variations depending on whether gross enterprise value, enterprise value or net value is used. Flaum connected those valuation measures to the company’s financing choices, digital credit and potential share buybacks.
He further compared Strategy’s capital structure with Strive’s and discussed how preferred securities can amplify a company’s exposure to Bitcoin. The interview did not provide a new price target for Strategy shares or a forecast with a specific numerical return.
Bitcoin cycle discussion
Flaum also considered whether Bitcoin’s traditional four-year cycle remains relevant. The conversation examined the timing of Bitcoin’s historical all-time highs relative to halving events, as well as a JPMorgan forecast and Bitcoin’s long-term returns. The source material does not specify the forecast figure or provide a definitive conclusion that the cycle has ended.
The interview was published by Bitcoin Magazine on October 31, 2026. Its disclaimer says the views belong to the participants and do not necessarily represent Bitcoin Magazine, BTC Inc. or affiliated entities. It also says the program is educational and informational, not investment, legal, tax or accounting advice.
Current market picture
Moneyiar market data at 12:53-12:54 p.m. on November 1, 2026, showed Bitcoin at $77,798.06, up 0.48% over 24 hours but down 3.16% over seven days. Dai was $0.9996, down 0.04% in 24 hours and 0.02% over seven days. Ethereum Classic stood at $7.1481, up 0.43% daily and down 4.81% weekly, while Lighter was $3.2647, up 18.90% over 24 hours and 2.70% over seven days.
