MicroStrategy: The Bitcoin Bet Masquerading as a Tech Company
Introduction: A Software Company Turned Crypto Casino
Once upon a time, MicroStrategy was a business intelligence firm. Today, it’s a Bitcoin holding company disguised as a software business.
Its market cap has ballooned to over $100 billion, not because of its software, but because of its aggressive Bitcoin purchases. Investors aren’t buying a company—they’re buying a leveraged bet on Bitcoin.
And that bet? It’s built on debt, dilution, and dangerous financial engineering.
The Math Problem: MicroStrategy’s Obscene Valuation
MicroStrategy is worth three times the value of its Bitcoin holdings. Let that sink in.
If you buy MicroStrategy stock, you’re effectively paying three times the price of Bitcoin. It’s like buying Bitcoin at $245,000 per coin when the actual market price is far lower.
This isn’t investing, it’s financial insanity.
The Debt Trap: How MicroStrategy Keeps the Illusion Alive
MicroStrategy’s entire strategy revolves around issuing debt to buy more Bitcoin. It has borrowed $7.27 billion through convertible bonds.
Here’s how the cycle works:
MicroStrategy issues debt at low interest rates.
It uses the money to buy Bitcoin.
The stock price rises because investors think it’s a genius move.
The company issues more shares to raise more money.
It buys more Bitcoin—and the cycle repeats.
This is not a sustainable business model. It’s a Ponzi-like structure that depends entirely on Bitcoin’s price continuing to rise.
The Accounting Trick: Hiding the Losses
MicroStrategy has been misleading investors with custom financial metrics. It created terms like BTC Yield and BTC $ Gain to make its Bitcoin strategy look profitable.
But in reality? It recently disclosed a $5.91 billion unrealized loss on its Bitcoin holdings. And when that news broke, its stock dropped 8.67% in a single day.
This isn’t a company, it’s a high-stakes gamble.
The Risk: What Happens When the Bubble Bursts?
MicroStrategy’s survival depends on Bitcoin’s price never crashing. If Bitcoin falls, MicroStrategy’s stock collapses.
And here’s the worst part:
If Bitcoin crashes, MicroStrategy might have to sell its holdings, triggering a death spiral.
If investors lose confidence, the company can’t issue more debt, and the illusion falls apart.
If regulators step in, MicroStrategy’s entire strategy could be dismantled.
This isn’t a safe investment. It’s a ticking time bomb.
Conclusion: The Dumbest Bet on Wall Street
MicroStrategy isn’t a tech company. It’s a leveraged Bitcoin casino.
Investors aren’t buying innovation, they’re buying hype, debt, and financial engineering. And when the illusion fades, reality will come crashing down.
So ask yourself: Are you investing in a business? Or are you just buying the dream—before it bursts?
Introduction: A Software Company Turned Crypto Casino
Once upon a time, MicroStrategy was a business intelligence firm. Today, it’s a Bitcoin holding company disguised as a software business.
Its market cap has ballooned to over $100 billion, not because of its software, but because of its aggressive Bitcoin purchases. Investors aren’t buying a company—they’re buying a leveraged bet on Bitcoin.
And that bet? It’s built on debt, dilution, and dangerous financial engineering.
The Math Problem: MicroStrategy’s Obscene Valuation
MicroStrategy is worth three times the value of its Bitcoin holdings. Let that sink in.
If you buy MicroStrategy stock, you’re effectively paying three times the price of Bitcoin. It’s like buying Bitcoin at $245,000 per coin when the actual market price is far lower.
This isn’t investing, it’s financial insanity.
The Debt Trap: How MicroStrategy Keeps the Illusion Alive
MicroStrategy’s entire strategy revolves around issuing debt to buy more Bitcoin. It has borrowed $7.27 billion through convertible bonds.
Here’s how the cycle works:
MicroStrategy issues debt at low interest rates.
It uses the money to buy Bitcoin.
The stock price rises because investors think it’s a genius move.
The company issues more shares to raise more money.
It buys more Bitcoin—and the cycle repeats.
This is not a sustainable business model. It’s a Ponzi-like structure that depends entirely on Bitcoin’s price continuing to rise.
The Accounting Trick: Hiding the Losses
MicroStrategy has been misleading investors with custom financial metrics. It created terms like BTC Yield and BTC $ Gain to make its Bitcoin strategy look profitable.
But in reality? It recently disclosed a $5.91 billion unrealized loss on its Bitcoin holdings. And when that news broke, its stock dropped 8.67% in a single day.
This isn’t a company, it’s a high-stakes gamble.
The Risk: What Happens When the Bubble Bursts?
MicroStrategy’s survival depends on Bitcoin’s price never crashing. If Bitcoin falls, MicroStrategy’s stock collapses.
And here’s the worst part:
If Bitcoin crashes, MicroStrategy might have to sell its holdings, triggering a death spiral.
If investors lose confidence, the company can’t issue more debt, and the illusion falls apart.
If regulators step in, MicroStrategy’s entire strategy could be dismantled.
This isn’t a safe investment. It’s a ticking time bomb.
Conclusion: The Dumbest Bet on Wall Street
MicroStrategy isn’t a tech company. It’s a leveraged Bitcoin casino.
Investors aren’t buying innovation, they’re buying hype, debt, and financial engineering. And when the illusion fades, reality will come crashing down.
So ask yourself: Are you investing in a business? Or are you just buying the dream—before it bursts?
TLDR? Watch the Video
MSTR: youtu.be/h7aZwtoZ3AI?si=c2rh7mdNp_c1qpHh
Tesla BYD: youtu.be/AD45kA1TXwQ?si=jwoSqkLTRPdkFANZ
Platinum: youtu.be/IAiq3x1x72s?si=KbD0LDPDpX4KeLR2
Gold youtube.com/watch?v=sT2v2vyhy7Q&t=10s
MSTR: youtu.be/h7aZwtoZ3AI?si=c2rh7mdNp_c1qpHh
Tesla BYD: youtu.be/AD45kA1TXwQ?si=jwoSqkLTRPdkFANZ
Platinum: youtu.be/IAiq3x1x72s?si=KbD0LDPDpX4KeLR2
Gold youtube.com/watch?v=sT2v2vyhy7Q&t=10s
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
TLDR? Watch the Video
MSTR: youtu.be/h7aZwtoZ3AI?si=c2rh7mdNp_c1qpHh
Tesla BYD: youtu.be/AD45kA1TXwQ?si=jwoSqkLTRPdkFANZ
Platinum: youtu.be/IAiq3x1x72s?si=KbD0LDPDpX4KeLR2
Gold youtube.com/watch?v=sT2v2vyhy7Q&t=10s
MSTR: youtu.be/h7aZwtoZ3AI?si=c2rh7mdNp_c1qpHh
Tesla BYD: youtu.be/AD45kA1TXwQ?si=jwoSqkLTRPdkFANZ
Platinum: youtu.be/IAiq3x1x72s?si=KbD0LDPDpX4KeLR2
Gold youtube.com/watch?v=sT2v2vyhy7Q&t=10s
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.