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

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MicroStrategy — now rebranded as Strategy — has undergone a dramatic transformation over the past two years, evolving from a niche enterprise software company into one of the most prominent corporate holders of Bitcoin. With its stock price surging more than 1,200% during this period, investors are left wondering: Is this momentum sustainable? And is now a smart time to buy Strategy below $500?

The answer isn’t straightforward. While the company’s aggressive Bitcoin accumulation strategy has fueled investor enthusiasm, it has also introduced significant financial and operational risks. Let’s break down what the rebrand means, assess whether the stock is undervalued or overvalued, and explore potential future scenarios that could shape Strategy’s trajectory.

The Rebranding: From MicroStrategy to Strategy

In early 2025, during a pivotal quarterly earnings call, Michael Saylor, executive chairman and founder, announced that MicroStrategy would officially rebrand as "Strategy" — a bold move symbolizing its complete pivot toward becoming a Bitcoin-focused entity. The new brand identity incorporates the iconic Bitcoin logo, signaling an irreversible shift in corporate direction.

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This isn’t just a cosmetic change. Strategy now positions itself as a Bitcoin Treasury Company (BTC) — a firm whose entire mission revolves around acquiring and holding Bitcoin. Every financial decision, from capital raises to debt issuance, is now aligned with this singular goal.

A key component of this strategy is the "21/21 Plan", unveiled in late 2024. The plan outlines an ambitious target to accumulate up to $42 billion in new Bitcoin** over the next three years using a mix of debt and equity financing. This aggressive accumulation underscores Saylor’s unwavering belief that Bitcoin is the ultimate store of value — one poised to reach **$13 million per coin in the long term.

Under this vision, Strategy could theoretically grow into a $10 trillion company, entirely backed by its digital asset reserves.

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Is Strategy Undervalued or Overvalued?

Despite the bullish narrative, serious questions remain about Strategy’s current valuation.

As of early 2025, the company holds 478,740 Bitcoins, valued at approximately $45 billion** based on prevailing market prices. Yet, the stock market has assigned Strategy a total market capitalization of **$85 billion — nearly twice the value of its Bitcoin holdings.

This premium implies that investors expect substantial future gains from additional Bitcoin purchases and continued price appreciation. However, such optimism may be fragile.

Financial Risks and Earnings Concerns

For four consecutive quarters, Strategy has reported net losses. In its most recent earnings report, the company recorded a $1 billion impairment loss** on its Bitcoin holdings due to temporary price declines — a non-cash charge that still pushed it into a **$670 million net loss for the quarter.

This raises a critical concern: What happens if Bitcoin prices stagnate or decline further?

Strategy’s business model depends on rising Bitcoin prices to justify its valuation and support future financing efforts. If Bitcoin fails to maintain upward momentum — especially struggling to sustain levels above $100,000 — investor confidence could wane, triggering downward pressure on both Bitcoin and Strategy’s stock.

Moreover, as Strategy divests from its legacy software business — once a source of consistent cash flow — it becomes increasingly reliant on capital markets for funding. Should market conditions tighten, the company might face pressure to sell Bitcoin to cover debt obligations or operating expenses.

Such sales could create a dangerous feedback loop:

This scenario highlights the inherent vulnerability of a company whose entire worth is tied to a single volatile asset.

The Bitcoin Bank Vision: A Possible Future?

Amid these risks, Michael Saylor has proposed an alternative path: transforming Strategy into a Bitcoin bank.

Imagine a financial institution that offers Bitcoin-backed lending, savings products, or even investment services — all secured by its massive Bitcoin reserves. Instead of passively holding digital assets, Strategy could generate revenue by lending out its Bitcoin to institutions or traders, earning yield in the process.

While still conceptual, this idea aligns with broader trends in decentralized finance (DeFi) and institutional crypto adoption. However, turning this vision into reality would require navigating complex regulatory landscapes — particularly around banking licenses and asset custody.

For now, this remains a long-term possibility rather than an immediate strategy. But if realized, it could fundamentally alter how investors view Strategy — not just as a proxy for Bitcoin exposure, but as an innovative financial services provider in the digital asset ecosystem.

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Can Strategy Reach $500 Per Share?

With shares trading around **$323**, Strategy is still **32% below** its all-time high of $474. Reaching $500 is technically feasible — but only under specific market conditions.

Given that Strategy’s valuation is deeply correlated with Bitcoin’s price performance, any meaningful move toward $500 would likely require:

However, if Bitcoin remains range-bound or enters another bear cycle in 2025, Strategy may struggle to regain momentum. In such an environment, owning Bitcoin directly could prove safer and more efficient than holding MSTR stock.

After all, buying Bitcoin eliminates counterparty risk, management dependence, and corporate financial uncertainty — offering pure exposure to the asset itself.

Frequently Asked Questions (FAQ)

Q: Why did MicroStrategy change its name to Strategy?
A: The rebrand reflects its full transition into a Bitcoin treasury company. The new name and branding emphasize its singular focus on acquiring and holding Bitcoin as its primary corporate mission.

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

Q: Is Strategy profitable?
A: No. The company has reported net losses for four consecutive quarters, largely due to impairment charges on its Bitcoin holdings when prices decline.

Q: What is the 21/21 Plan?
A: It’s Strategy’s initiative to acquire up to $42 billion in additional Bitcoin over three years using debt and equity financing to accelerate its accumulation strategy.

Q: Could Strategy sell its Bitcoin?
A: While unlikely under current leadership, financial pressures could force asset sales in the future — especially if cash flow remains constrained and debt obligations grow.

Q: Is MSTR stock a good substitute for buying Bitcoin?
A: Not necessarily. While MSTR offers indirect exposure to Bitcoin, it comes with added risks including corporate leverage, stock volatility, and operational dependencies not present when holding Bitcoin directly.

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Final Thoughts

Strategy’s bold bet on Bitcoin has captured global attention — and delivered impressive returns so far. But beneath the headlines lies a high-risk financial structure dependent on perpetual Bitcoin price growth.

Buying Strategy below $500 may seem attractive given its distance from recent highs, but investors must weigh that opportunity against real financial vulnerabilities. For those seeking pure Bitcoin exposure with fewer moving parts, owning the cryptocurrency directly may offer a simpler and safer path forward.

As always in investing: know your risk tolerance, understand the underlying fundamentals, and make decisions aligned with your long-term goals.