"There is a company called Strategy-which until last year was called MicroStrategy. Strategy sells some software, enough to generate $128 million in revenue in the last quarter for which it reported earnings. But that's not really its business. Strategy's business is to regularly sell new stock to investors, use that money to buy Bitcoins, and pay dividends to some of its existing investors."
"But here is what is fun: Strategy's more than 700,000 Bitcoins are worth $54 billion at current prices. Meanwhile, the entire market capitalization of Strategy, whose business is buying Bitcoins, was about $41 billion when the market opened on Tuesday. That means that if you own Strategy stock, the main thing that you own is 80 cents' worth of Bitcoin for every dollar of stock."
Strategy, formerly MicroStrategy, records modest software sales but primarily funds Bitcoin purchases by issuing new shares and sometimes paying dividends to existing investors. The company holds more than 700,000 Bitcoins valued at about $54 billion, while its market capitalization recently stood near $41 billion, implying the stock represents roughly $0.80 of Bitcoin per $1 of equity and that Strategy owns about 3 percent of all Bitcoin. The practice enabled a proliferation of crypto-treasury companies and pushed such positions into many retirement portfolios. With crypto easier to buy and Strategy's share price falling, investors are reassessing the need for such intermediaries.
Read at Slate Magazine
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