Is Strategy Dragging Bitcoin Down?
is up 2% year to date, but the share price of the world’s largest holder of Bitcoin, Strategy (NASDAQ:) (MSTR – formerly MicroStrategy), is down about 30% year to date. As we have noted in the past, Strategy is a Bitcoin holding company, a leveraged alternative to holding Bitcoin.
Its original business, enterprise analytics software, has lost money for the better part of the last ten years. As a software company, Strategy’s value is near zero, or even below zero, since it consistently loses money. However, it owns 641,692 bitcoin, making it the world’s largest corporate holder. Strategy’s Bitcoin is funded with debt and equity.
Of note is the approximate $8.2 billion in debt, which must be repaid or rolled over. Given that…
