MicroStrategy (MSTR, Financial) has seen its stock price soar over 450%, despite its core software sales business facing financial difficulties. The company's market value once surged to $90 billion, driven by nearly $37 billion from its Bitcoin reserves. Once a symbol of the internet bubble, MicroStrategy is now the largest corporate holder of Bitcoin, owning nearly 2% of the global supply.
In 2000, the company faced a crisis after admitting to false financial reporting, which led to a dramatic stock price drop and a settlement with the SEC. Since August 2020, MicroStrategy has transformed by aggressively acquiring Bitcoin, raising funds through stock and convertible debt issuances.
Under its "21/21 Plan," the company aims to raise $42 billion for further Bitcoin investments. Although the strategy has yielded significant returns, it poses risks if Bitcoin prices fluctuate or regulatory scrutiny increases.
