Michael Saylor, the mastermind behind Strategy (MSTR), has surprised Wall Street by turning a once-ordinary software company into a $14 billion juggernaut, not through business partnerships, but thanks to Bitcoin‘s rapid surge.
According to Bloomberg, Strategy is expected to announce an unrealized gain of $14 billion for the second quarter. That puts the Virginia-based company in the same class as financial behemoths like JPMorgan and Amazon, despite software revenue barely exceeding $112.8 million.
This windfall is the result of a major change in accounting regulations that now allows Strategy to value its 597,325 Bitcoin assets at market value. With Bitcoin up over 30% last quarter, the timing couldn’t have been better.
Saylor’s initial foray into crypto back in August 2020 raised eyebrows. With a $250 million Bitcoin purchase, many analysts saw it as a reckless move by a firm that had lost its tech edge.
But the numbers tell a different story today. Since the pivot, Strategy’s stock has surged 3,300%, far outpacing the S&P 500’s 115% climb. Meanwhile, Bitcoin itself has appreciated around 1,000% over the same four-year stretch.
This transformation has rebranded Strategy from a legacy software company into what some now call a “Bitcoin ETF with a software wrapper.”
The real tipping moment occurred on June 30, when Strategy was included to the Russell Top 200 Value Index. That index, which is normally assigned for companies with regular earnings and dividends, defied tradition by including Saylor’s firm, indicating the growing importance of scarcity-based valuing.
Unlike typical elements such as ExxonMobil, Strategy does not have consistent income sources or dividends. Its value is instead driven by its enormous Bitcoin holdings, which have generated a 19.7% return year to date.
Despite the staggering gains, critics aren’t sold on Saylor’s strategy. Famed short-seller Jim Chanos labeled the model as “financial gibberish,” arguing that MSTR trades at an unsustainable premium compared to its actual BTC assets.
Chanos suggests shorting MSTR while buying Bitcoin directly, a strategy he believes will profit when the valuation gap closes.
Still, Saylor’s bold vision is influencing others. Firms like Sharplink Gaming, Upexi, and BitMine Immersion are copying his crypto-heavy approach, buying up Ethereum and Solana with hundreds of millions in capital.
Even established giants like Tesla and Block maintain Bitcoin on their balance sheets, though none match Strategy’s singular focus.
Whether Saylor’s model rewrites the rules of value investing or collapses under its own weight remains to be seen. But for now, Michael Saylor has redefined what corporate leadership in the age of digital assets can look like.
