But we all know its CEO is a Bitcoin maxi and a master internet troll.
MicroStrategy = Bitcoin
MicroStrategy, a name that once resonated with software and business intelligence, is now synonymous with Bitcoin.
The company has pivoted so hard into cryptocurrency that its software business feels like an afterthought.
Since 2020, under the audacious leadership of Michael Saylor, the firm has become the largest publicly traded corporate holder of Bitcoin.
With over 402,100 Bitcoins on its balance sheet, the company has transformed into something more akin to a high-stakes crypto hedge fund than a software business.
And the market has noticed.
MicroStrategy’s stock has skyrocketed nearly 500% this year alone, far outpacing even Bitcoin’s meteoric rise.
Investors seem to be cheering on this bold, some might say reckless, strategy.
But let’s take a breath and ask – has the company’s valuation untethered itself from reality?
Consider this: Bitcoin’s price, hovering near $100,000, gives MicroStrategy’s Bitcoin holdings a theoretical value of roughly $400 billion.
Yet the company’s market cap recently touched $100 billion.
Yes, you read that correctly.
Investors are paying a 400% *premium* for a company that has essentially become a Bitcoin proxy.
The irony is hard to ignore.
MicroStrategy’s actual business – software and services – has been bleeding.
Revenues dropped 10% in the last quarter, and its net losses have ballooned to $340 million.
Still, the company keeps doubling down, issuing debt and selling equity to buy even more Bitcoin.
It’s as if the strategy is: “When in doubt, buy more crypto.”
And perhaps that’s the gamble that’s paying off – for now.
The company’s moves have created a feedback loop of sorts.
Its Bitcoin purchases fuel market excitement, which boosts both Bitcoin prices and MicroStrategy’s stock.
A win-win, right?
Not so fast.
Critics, including short-sellers like Citron Research, are sounding alarms.
With Bitcoin ETFs now providing easier and more direct access to the cryptocurrency, why should investors pay a premium for MicroStrategy’s stock?
The logic doesn’t quite add up, and some are betting that the party won’t last.
Citron’s report has already wiped 16% off MicroStrategy’s stock price in one day.
The risks are glaring.
If Bitcoin’s price stumbles – or if investors lose faith in this circular strategy – MicroStrategy could find itself in serious trouble.
The company is leveraged to the hilt, with debt that’s essentially tied to the whims of a volatile crypto market.
And let’s not forget, Bitcoin isn’t exactly known for its stability.
So, is MicroStrategy a genius innovator blazing a bold new trail or a company teetering on the edge of financial madness?
MicroStrategy has bet its future on Bitcoin.
And whether that gamble will solidify its legacy or end in disaster is anyone’s guess.
Is Microstrategy wise to go all-in in Bitcoin?
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Nobody knows what MicroStrategy does. was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.