Microstrategy share price: what’s their business model?
MicroStrategy overview
MicroStrategy‘s surge in 2024, driven largely by its bitcoin holdings, has propelled its valuation to an astonishing $82 billion. This ascent, coupled with a nearly 500% rise in its stock price this year, contrasts sharply with its historical valuation, which hovered between $1 billion and $2 billion for much of the last decade. However, the company’s strategy comes with significant risks. With around half its value tied to Bitcoin, MicroStrategy’s stock price now mirrors the cryptocurrency’s volatile movements, creating the potential for sharp declines if Bitcoin falters.
The company’s underlying software business is dwarfed by its Bitcoin-focused financial operations, and its high premium above Bitcoin holdings…
