Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
U.Today - The Financial Times (FT) has made a short documentary about the phenomenal success of Michael Saylor’s venture, called Strategy, which he rebranded from his business-intelligence-developing company MicroStrategy. The documentary is titled: ““Michael Saylor’s $40BN Bitcoin Bet.”
This half-hour film contains interviews with various experts in finance and with Michael Saylor as well.
Saylor’s Bitcoin success draws FT attention
The film, first of all, reminded viewers that Strategy is the largest single entity that holds Bitcoin. The company’s crypto bag constitutes 553,555 BTC worth $57,380,293,479. Due to the MSTR price going up, Saylor’s popularity began to surge as he became a frequent guest on CNBC, a keynote speaker on various top crypto conferences, and once was even featured on a Forbes magazine front cover. Overall, this man’s personal brand began to get a heavy boost.In this documentary, Saylor refers to himself as a “financial engineer,” which seems to be a brand new type of profession that evolved from a “financial manager.” The anchor of the documentary, who interviewed Saylor and various experts on finance and regulation, Katie Martin, stated that after speaking to all those various experts and investors, she realized that Bitcoin is something much more than a regular investment for them.
Overall, thanks to Bitcoin, MicroStrategy’s stock soared by roughly 400% in 2024, massively outperforming Apple, Nvidia, Meta and Tesla. MSTR then got a capitalization of $100 billion. Since 2020, MicroStrategy began raising debt to invest it in Bitcoin for those who prefer to get exposure to BTC but would rather doing via a proxy company stock.
Saylor and Strategy’s big Bitcoin profit secret
The guests interviewed by the host admitted that while company executives are forbidden to tout their company’s stock, Saylor is hyping Bitcoin, which is the asset underlying MSTR. Thus, he is hyping his own stock indirectly. Those experts mentioned his daily AI-generated images of himself in various locations and wearing suits of people of various professions, all promoting Bitcoin, calling them “weird.”The reason why Saylor and Strategy continue to sell debt is because the premium on top of the MSTR network goes up. That is what happens when the BTC price rises, and that is what Strategy takes advantage of, an SEC expert Henry Hu said. This is how MSTR often outperforms Bitcoin itself.