Stock value up 1,900% due to focus on Bitcoin, but debt and volatility raise concerns

From Nasdaq

March 18, 2025 8:23:00 AM:

Strategy (formerly MicroStrategy) (NASDAQ: MSTR) has seen a 1,900% increase in stock value since 2023, primarily due to its focus on Bitcoin (CRYPTO: BTC). CEO Michael Saylor is a strong advocate for Bitcoin, but recent volatility raises questions about the company’s future.

With a market cap of $64 billion, Strategy has positioned itself as the world’s largest Bitcoin treasury, holding 499,226 BTC at an average cost of $66,360. However, the company has incurred significant debt through issuing new shares and convertible bonds to fund Bitcoin purchases, which could pose risks in the long run.

Despite Strategy’s success in leveraging Bitcoin’s price increases to boost its stock value, there are concerns about potential share dilution and financial instability if Bitcoin prices decline. The company’s current market value of Bitcoin holdings stands at $41.4 billion, reflecting a premium that may not be sustainable.

Investors are advised to approach Strategy’s stock with caution, as the company has yet to demonstrate profitable monetization of its Bitcoin assets. Until Strategy can show meaningful profits from Bitcoin or align its stock price with Bitcoin’s market value, there may be better investment options available for those seeking exposure to cryptocurrency.

Read more at Nasdaq.: Strategy (MicroStrategy): Buy, Sell, or Hold?