Strategy's stock eclipses Bitcoin's growth, raising concerns
fool.com —
Strategy, formerly MicroStrategy, has seen its stock rise over 1,800% since August 2020, outperforming Bitcoin's 600% increase. The company has become the largest corporate holder of Bitcoin, owning nearly 500,000 coins. In February, Strategy changed its name to reflect its focus on Bitcoin, announcing plans to buy $42 billion worth over three years, financed by equity and debt. This shift has raised concerns about its high leverage to Bitcoin's price. Despite a recent 20% drop in stock value, analysts remain divided on Strategy's future. The company's valuation is heavily tied to its Bitcoin holdings, which could lead to further declines if Bitcoin prices fall.