Let’s just be real: an investment in MicroStrategy (MSTR) is basically a proxy for the cryptocurrency market. So, why not just put money in cryptos directly? As regulatory developments have demonstrated, betting on this market carries unique structural risks beyond the usual ebb and flow of fear and greed. Bidding up MSTR stock helps mitigate some of these concerns.
By no means am I endorsing cryptos or their proxies: I’m just explaining the possible incentive behind MicroStrategy. Beyond the regulatory environment, digital assets can fall prey to hacks, scams and even lost passwords. Of course, there are administrative risk factors involved in equities like MSTR stock. Still, investors may sleep easier betting on an actual company than a blockchain asset.
