The best advice I've ever read on just buying Bitcoin over MicroStrategy (Strategy) stock that was written way back in early 2025 when the stock was popping.

"Even if the price of Bitcoin keeps rising, the math around MicroStrategy's valuation makes little sense.

Today, MicroStrategy has a market capitalization of almost $90 billion. It has Bitcoin holdings worth about $28.5 billion. Subtract out its $4.2 billion in long-term debt, and you have a net asset value (NAV) of $24.3 billion. The market cap of $90 billion is close to 4 times its Bitcoin holdings. The underlying software business isn't worth much in this equation.

MicroStrategy's stock price has detached from the assets on its balance sheet. You wouldn't buy a dollar for four dollars, so why would you buy MicroStrategy at 4 times its Bitcoin holdings? If you want exposure to Bitcoin, buy the asset directly instead.

Avoid buying MicroStrategy stock in your portfolio right now. Perhaps the stock will be higher in five years if Bitcoin keeps surging, but given the detachment from the underlying Bitcoin price, I think it's likely that the stock will underperform the performance of actual Bitcoin during the next five years. Bitcoin is not guaranteed to rise, either.

Even though the stock has done phenomenally well during the past five years, it looks like a bad bet for investors to make right now."

Stolen from: The Motley Fool

Original Article Link: https://www.fool.com/investing/2025/02/04/where-will-microstrategy-stock-be-in-5-years/

How long will MicroStrategy's strategy last?