According to CryptoPotato, the crypto industry is debating whether Bitcoin (BTC) or MicroStrategy (MSTR) is a better investment following several weeks of strong performance for both assets. Since the beginning of the year, Bitcoin has rallied 54% due to massive demand for newly launched Bitcoin ETFs, while MicroStrategy, owned by Bitcoin billionaire Michael Saylor, has risen 155% in the same period.
MicroStrategy is the world's largest corporate holder of Bitcoin, with 205,000 BTC on its balance sheet, nearly 1% of all BTC that will ever exist. Some, including Saylor, have compared the company to a Bitcoin spot ETF without a management fee. Proponents also highlight its ability to use cheap, long-term debt to acquire more BTC. Bitcoin analyst Willy Woo explained that every time MSTR does a leverage buy on cheap financing, the valuation will boost, acting like a levered BTC long.
However, MicroStrategy carries corporate risk compared to actual Bitcoin, as management may change its Bitcoin strategy. Some of its valuation is also based on its pre-existing software business, which may not be profitable in the future. Critics argue that Saylor's selling of MSTR shares to purchase more BTC indicates a lack of conviction in his own company compared to Bitcoin itself.
