Tom Lee, head of research at Fundstrat Global Advisors, predicts that Strategy Inc. (NASDAQ:MSTR) (formerly MicroStrategy) could deliver superior returns compared to Bitcoin (CRYPTO: BTC) itself as the cryptocurrency rallies.
What Happened: “As Bitcoin goes up, MicroStrategy very likely goes up a lot more,” Lee said in a Wealthion interview reposted on X.
MicroStrategy transformed from a software company into one of the world’s largest corporate Bitcoin holders through an aggressive debt-fueled acquisition strategy. The company now holds 592,100 Bitcoin worth approximately $60 billion, generating an unrealized gain of 43% according to recent filings.
Lee explained the company’s innovative financing approach allows it to issue convertible bonds at “almost no interest cost” to purchase additional Bitcoin. This strategy has created a premium valuation mechanism where MicroStrategy trades based on its Bitcoin holdings rather than its …