Strategy Inc. (NASDAQ:MSTR) outlined a vision to become the world’s most valuable company by maximizing Bitcoin (CRYPTO: BTC) ownership and creating the best equity value.
Strategy’s Ultimate Goal
Strategy’s official X handle posted a video of Michael Saylor from last week’s second-quarter earnings call, where he presented their flywheel capital strategy to become the world’s biggest company by market capitalization.
Saylor said the first step in this goal is to own the “most capital” in the form of Bitcoin, then aim for a 30% annual return on reserves in BTC.
Then comes issuance of what he described as the “strongest credit” in the form of Perpetual Stretch Preferred Stock (NASDAQ:STRC). Saylor said the company targets digital credit equal to 10–20% of BTC reserves annually.
And by issuing the “strongest credit,” Saylor said, the company could create the “best equity,” i.e, its common stock, MSTR.
Upside Needed
As of this writing, Strategy has a market capitalization of roughly $36 billion.
Currently, the world’s most valuable company is Nvidia Inc. (NASDAQ:NVDA), at $5.3 trillion, followed by Apple Inc. (NASDAQ:AAPL) at $4.5 trillion.
To dethrone Nvidia, Strategy would need an upside of roughly $5.26 trillion, or on the order of 140x-145x from today’s level, but this is based on NVDA’s current valuation, which would likely be much higher by the time MSTR reaches this level.
These numbers are purely mathematical. Actual outcomes will depend heavily on Bitcoin’s performance, the successful execution of the company’s credit-issuance strategy and market perception of MSTR.
Strategy Changes Approach
Notably, Saylor said during the call that the company believes its next trillion-dollar opportunity isn’t owning more Bitcoin—it’s building a business on top of it.
This signals a shift in Strategy’s long-term approach. Instead of solely accumulating Bitcoin, Saylor highlighted how the company’s Bitcoin holdings can underpin a new credit business.
Strategy reported quarterly revenue of $122.39 million last week, which just missed the consensus estimate of $122.91 million.
The firm holds over 842,138 Bitcoin, worth $58.51 billion, making it the largest institutional holder in the world.
Price Action: At the time of writing, BTC was exchanging hands at $64,815.20, up 1.12% over the last 24 hours, according to data from Benzinga Pro.
Strategy shares were up 0.03% in pre-market trading after closing 0.74% higher at $98.37 during Wednesday’s regular trading session.
Benzinga’s Edge Stock Rankings indicate that MSTR has underperformed with a weaker price trend across short-, medium-, and long-term timeframes.
Photo courtesy: Shutterstock
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