From Nasdaq:

MicroStrategy (NASDAQ: MSTR), which debuted on June 11, 1998 at $60 per share, soared to an all-time high of $3,130 during the dot-com bubble. Though it now trades around $480, its stock’s wild fluctuations have still outperformed the S&P 500, turning $20,000 into $1.04 million at one point.

In recent years, MicroStrategy’s frantic shift into Bitcoin (CRYPTO: BTC) has diverted focus from its lagging software operations, despite growth in its revenue and an enterprise value of $9.7 billion, which is nearly half tied to Bitcoin.

After becoming a Bitcoin hoarder, MicroStrategy saw its stock price double. But with a current enterprise value 19 times its annual sales, the company’s worth may be showing symptoms of overheating.

Despite Bitcoin being a wild card, MicroStrategy’s stock needs to grow its revenue at a 22% CAGR over the next 20 years to turn a $20,000 investment into $1 million. The company’s Bitcoin holdings could help drive its stock price higher, but this is a risky investment path to becoming a millionaire.

Given the uncertain forecasts of Bitcoin, skeptical investors may prefer buying Bitcoin directly or investing in new Bitcoin ETFs over dealing with the rocky and highly leveraged MicroStrategy. The company may possibly make you a millionaire, but there are clearer and simpler ways to achieve that goal.

The Motley Fool Stock Advisor analyst team does not consider MicroStrategy one of the 10 best stocks to invest in now, despite MicroStrategy’s recent shift into Bitcoin. It is believed that the 10 stocks that made the cut could possibly bring high returns.



Read more: Could MicroStrategy Stock Help You Become a Millionaire?