Should You Buy MicroStrategy (Now Called Strategy) While It's Below $500?

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The past two years have been nothing short of extraordinary for MicroStrategy, now rebranded as Strategy, with its stock surging over 1,200% since 2023. This meteoric rise is not the result of software innovation or operational growth—but rather, a bold and unwavering bet on Bitcoin. As one of the largest corporate holders of Bitcoin, Strategy now owns more than 478,740 BTC, representing over 2% of the total Bitcoin supply. This aggressive accumulation has transformed the company from a niche business intelligence firm into a de facto Bitcoin treasury vehicle.

In early 2025, during a pivotal quarterly earnings call, Strategy announced a major rebrand: retiring the "Micro" prefix and integrating the Bitcoin symbol (₿) into its new identity. The message is clear—this is no longer a tech company dabbling in crypto. It’s a firm fully committed to Bitcoin as its core asset and strategic foundation.

👉 Discover how Bitcoin-focused strategies are reshaping modern investing.

But with shares trading around $323—well below the $500 mark some analysts cite as a potential target—investors are asking: Is this a buying opportunity, or a speculative trap?

Why Strategy Rebranded: A Signal of Full Commitment

The rebrand from MicroStrategy to Strategy wasn’t just cosmetic. According to Executive Chairman Michael Saylor, it was a declaration of intent. The company no longer sees itself as a software provider but as a Bitcoin Treasury Company (BTC)—a firm whose entire mission is to acquire, hold, and maximize value from Bitcoin.

This pivot reflects Saylor’s long-standing belief that Bitcoin is the ultimate digital asset and the only cryptocurrency with lasting value. He has publicly predicted Bitcoin could reach $13 million per coin in the long term, and he envisions Strategy evolving into a $10 trillion enterprise powered entirely by its Bitcoin reserves.

To accelerate this vision, Strategy launched the "21/21 Plan" in late 2024—a bold initiative to acquire up to $42 billion in additional Bitcoin over the next three years. The funding will come from a mix of debt and equity offerings, signaling an aggressive capital-raising strategy aimed at scaling Bitcoin holdings at all costs.

This level of commitment raises both admiration and concern. On one hand, it demonstrates conviction. On the other, it increases financial leverage and dependence on a single volatile asset.

Is Strategy Overvalued? The Valuation Dilemma

Here lies the central debate: Is Strategy undervalued or overvalued?

Currently, Strategy holds approximately 478,740 Bitcoins, valued at roughly $45 billion based on prevailing prices. Yet, the company’s market capitalization sits near $85 billion—nearly double the value of its Bitcoin holdings. This premium implies that investors expect massive future gains from Bitcoin appreciation and continued strategic execution.

However, critics aren’t convinced. Bryan Routledge, a finance professor at Carnegie Mellon University, has questioned the logic behind such a valuation. How can a company trading at twice its asset value be justified—especially when it’s been unprofitable for four consecutive quarters?

In its most recent earnings report, Strategy reported a net loss of $670 million, driven largely by a $1 billion impairment charge on its Bitcoin holdings. While paper losses are expected in volatile markets, they highlight a critical vulnerability: Strategy’s business model collapses if Bitcoin doesn’t keep rising.

Unlike traditional companies with diversified revenue streams, Strategy has largely abandoned its legacy software business—the very source of past cash flow. Without consistent income, the company relies on raising capital through stock and debt to fund further Bitcoin purchases.

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If Bitcoin enters a prolonged sideways or bear market, Strategy may face pressure to sell part of its holdings to cover operating costs or debt obligations. Such sales could trigger a negative feedback loop: selling BTC depresses its price, which reduces the value of remaining holdings, which further weakens investor confidence.

Could Strategy Become a Bitcoin Bank?

Despite the risks, there’s a compelling alternative future: Strategy evolving into a Bitcoin-native financial institution—a so-called "Bitcoin bank."

Michael Saylor has openly discussed this possibility. Instead of passively holding Bitcoin, Strategy could begin generating yield by lending its BTC holdings to institutional borrowers, offering Bitcoin-backed loans, or even issuing financial products denominated in Bitcoin.

This would transform Strategy from a passive treasury into an active financial player—earning interest on its assets rather than just betting on price appreciation.

While still speculative, this vision aligns with broader trends in decentralized finance (DeFi) and institutional crypto adoption. However, it would require significant regulatory navigation. Unlike traditional banks backed by fiat reserves, a Bitcoin bank would operate in uncharted legal territory.

For now, this remains a long-term possibility rather than an immediate reality. But if realized, it could justify Strategy’s current premium valuation by introducing sustainable revenue streams.

Can Strategy Reach $500 Per Share?

With shares currently around $323—about 32% below its all-time high of $474—the $500 target seems achievable if Bitcoin breaks out.

Historically, Strategy’s stock price has moved in near-perfect correlation with Bitcoin’s price. When BTC rises, MSTR typically follows—often with amplified gains due to investor sentiment and leverage.

However, 2025 has not delivered the expected Bitcoin breakout. Despite bullish predictions, Bitcoin has struggled to sustain levels above $100,000. This stagnation fuels skepticism about Strategy’s ability to grow without BTC momentum.

Reaching $500 would likely require:

Without these catalysts, the path to $500 remains uncertain.

Frequently Asked Questions (FAQ)

Q: Why did MicroStrategy change its name to Strategy?
A: The rebrand reflects its full commitment to becoming a Bitcoin-focused treasury company. The new name and use of the Bitcoin symbol emphasize that Bitcoin is now its core business.

Q: Does Strategy still have a software business?
A: While it technically still exists, the software division has been deprioritized. Revenue and strategic focus are now almost entirely centered on Bitcoin accumulation.

Q: How much Bitcoin does Strategy own?
A: As of early 2025, Strategy holds approximately 478,740 Bitcoins—over 2% of all existing BTC.

Q: Is investing in Strategy the same as buying Bitcoin?
A: No. Strategy is leveraged to Bitcoin but carries additional risks—including corporate debt, stock dilution, and operational volatility—that pure BTC ownership does not.

Q: Could Strategy go bankrupt if Bitcoin crashes?
A: While unlikely in the short term due to its large BTC reserves, sustained losses and debt obligations could force asset sales or restructuring if BTC remains depressed for years.

Q: What is the 21/21 Plan?
A: A three-year strategy to acquire up to $42 billion in additional Bitcoin using debt and equity financing to accelerate accumulation.

👉 Learn how macro trends are influencing next-gen investment vehicles like Strategy.

Final Thoughts: Direct Bitcoin vs. Strategy Stock

For most investors, buying Bitcoin directly may be a safer and more transparent option than investing in Strategy. While Strategy offers amplified exposure to BTC price movements, it also introduces layers of corporate risk—leverage, dilution, regulatory scrutiny, and operational dependency on continued fundraising.

If you believe in Bitcoin’s long-term potential but want to minimize complexity, owning BTC outright removes intermediaries and counterparty risks.

That said, for investors seeking leveraged exposure and believing in Saylor’s vision of a Bitcoin-powered financial future, Strategy remains a high-risk, high-reward play worth monitoring.

The key takeaway? Strategy is no longer a tech stock—it’s a proxy for Bitcoin with financial engineering attached. Whether it’s worth buying below $500 depends entirely on your outlook for Bitcoin—and your tolerance for volatility.

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