Strategy, formerly MicroStrategy, became the world’s largest holder of Bitcoin over the past 5.5 years. Its stock surged 1,100% as Bitcoin’s price rose 670%. It has spent $53.9 billion on 709,715 Bitcoins, more than its $61.3 billion enterprise value. Strategy plans to raise $42 billion to buy more Bitcoin, aiming for a $21 million price target by 2045.

Strategy plans to use its struggling software business to generate cash for Bitcoin purchases. It can issue convertible notes and raise capital more efficiently than Bitcoin trusts or ETFs. However, its leverage could pose risks if Bitcoin’s price collapses, potentially rendering its balance sheet insolvent. Yet, if Bitcoin’s price continues to rise, Strategy could generate significant gains.

Bitcoin’s scarcity and utility as “digital gold” could drive its price higher, especially as fiat currencies devalue. If Bitcoin soars 23,500% to reach a $21 million price by 2045, Strategy’s stock could surge over 10 times. While the potential upside is significant, investors should be aware of the risks associated with an all-in bet on Bitcoin.

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Read more at Nasdaq: How Buying Strategy (MSTR) Stock Today Could 10x Your Net Worth