Strategy, Metaplanet Plunge From Summer Highs as Bitcoin Treasury Hype Cools Off

Bitcoin's treasury narrative hits a wall—Strategy and Metaplanet stocks tumble hard from their summer peaks.

The Crypto Correction

Both firms rode the wave of corporate Bitcoin adoption earlier this year, but the momentum has clearly stalled. Strategy's stock has dropped sharply, echoing Metaplanet's decline as investor enthusiasm wanes.

Market Realities Bite

Numbers don't lie—the declines are significant. Summer highs now look like distant memories as the reality of volatile crypto holdings sets in. Turns out, stacking sats on a balance sheet doesn’t automatically make you a tech giant—sometimes you’re just a leveraged bitcoin bet with an office.

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As durable as it gets

Enbridge operates one of North America's largest energy infrastructure businesses spanning liquids pipelines, gas transmission, gas distribution and storage, and renewable power. The Canadian pipeline and utility company has one of the lowest-risk business models in the energy sector. Cost-of-service agreements and long-term contracts backstop 98% of its cash flows. As a result, Enbridge produces very predictable results. It has achieved its annual financial guidance for 19 straight years, which includes two major recessions and several other turbulent periods.

The company's diversified business generates substantial cash flows. Enbridge pays out 60% to 70% of its stable cash FLOW via dividends (5.6% current yield). That provides investors with a solid base return, regardless of market conditions. The energy company retains the rest of its cash to reinvest in growing its business.

Enbridge currently has a massive backlog of commercially secured growth capital projects that should come online through the end of the decade. This backlog gives the company significant visibility into future growth. Enbridge expects to grow its cash Flow per share by around a 3% compound annual rate through next year, with this growth accelerating to about 5% per year thereafter. This anticipated cash-flow growth underpins Enbridge's ability to consistently raise its dividend, which it has done for 30 straight years. It should have the fuel to grow its dividend by up to 5% annually in the coming years.

High-powered growth ahead

Brookfield Renewable is one of the world's largest renewable energy producers. The company sells 90% of the electricity it produces under long-term, fixed-rate power purchase agreements (14-year average remaining term) with utilities and large corporations. These agreements index about 70% of its revenue to inflation. As a result, Brookfield generates very stable and steadily rising cash flow, even during a recession, supporting its 4.4%-yielding dividend.

The company expects its existing power portfolio to deliver 4% to 7% growth in annual funds from operations (FFO) per share through the end of the decade. It sees this growth coming from inflation escalations and margin enhancement activities, such as signing higher-rate power purchase agreements (PPAs) as legacy ones expire. Meanwhile, Brookfield has a vast pipeline of renewable energy development projects under construction or in advanced stages, including a staggering 10.5 gigawatts it expects to deliver forthrough 2030. These projects should add another 4% to 6% to its FFO per share each year as they come online.

Additionally, Brookfield has the financial flexibility to make acquisitions as opportunities arise. For example, it recently agreed to invest up to $1 billion to boost its stake in Colombian hydroelectric producer Isagen, which will add 2% to its FFO per share next year. Add it all up, and the company expects its growth drivers to power more than 10% annual FFO-per-share growth for the foreseeable future.

Brookfield's growing cash flow should support continued dividend increases, which the company expects to raise by 5% to 9% each year. This outlook aligns with Brookfield's stellar record of raising its dividend, which it has grown at a 6% compound annual rate since 2001.

Recession-resistant energy stocks

Growing recession fears threaten many energy stocks, but not Enbridge and Brookfield Renewable. Their low-risk models and secured growth provide resilient and predictable returns. If you want stability through the current uncertainty, these are standout energy stocks to consider buying this year.