---
title: "The \"epic spectacle\" of the capital market: MSTR, which plummeted from 333 to 0.42 25 years ago"
description: "Despite the financial difficulties and gradual decline of MicroStrategy's core business—software sales—the company's stock price has still risen by over 450%. Its market capitalization once soared to "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/221073669.md"
published_at: "2024-12-01T23:41:49.000Z"
---

# The "epic spectacle" of the capital market: MSTR, which plummeted from 333 to 0.42 25 years ago

> Despite the financial difficulties and gradual decline of MicroStrategy's core business—software sales—the company's stock price has still risen by over 450%. Its market capitalization once soared to $90 billion, with nearly $37 billion coming from the value of its Bitcoin reserves

MicroStrategy (MSTR), once regarded as a typical representative of the internet bubble, has now become a major "epic spectacle" in the capital market.

Today, the company is the largest corporate holder of Bitcoin globally, owning nearly 2% of the world's Bitcoin reserves.

However, the company seemed "less than glorious" over twenty years ago. In 2000, as the company admitted to inflating financial data, its stock price plummeted from $333 to $0.42, and it faced an investigation by the U.S. Securities and Exchange Commission, ultimately paying hefty fines.

Today, MicroStrategy's shareholders once again face a paradoxical situation. The company has reaped enormous returns from the surge in Bitcoin, but how long can this model, which relies on the continuous rise in Bitcoin prices, be sustained?

## The "Never Satisfied" Bitcoin Acquirer

Twenty years ago, MicroStrategy was originally a software company. With Super Bowl advertisements and soaring stock prices, it once became the darling of the capital market. MicroStrategy co-founder Michael Saylor boldly proclaimed:

> "Our software will become ubiquitous and indispensable; if it stops working, it will cause chaos."

However, **in 2000, as the company admitted to inflating financial data, its stock price fell from $333 to $0.42, and it faced an investigation by the U.S. Securities and Exchange Commission (SEC).** Saylor and two colleagues later reached a settlement with the SEC, paying hefty fines and illegal gains, although the two did not admit to the charges.

**Since August 2020, MicroStrategy has "transformed" into the largest corporate holder of Bitcoin globally, with its stock price soaring approximately 28 times.** Over the past two years, MicroStrategy has raised funds through continuous stock issuances and convertible bonds to purchase Bitcoin. To date, the company owns nearly 2% of the world's Bitcoin reserves.

According to the company's latest announced "21/21 plan," MicroStrategy plans to raise $42 billion, half of which will come from stock sales and the other half from debt financing, to continue increasing its Bitcoin investments. Saylor previously boldly predicted that Bitcoin would rise to $13 million by 2045.

**Although MicroStrategy's core business—software sales—has encountered financial difficulties and is gradually shrinking, the company's stock price has still risen over 450%.** Its market capitalization once soared to $90 billion, with nearly $37 billion coming from the value of its Bitcoin reserves.

MicroStrategy is no longer just a software company but a "never satisfied" Bitcoin acquirer.

Today, MicroStrategy's shareholders once again face a paradoxical situation. The company has reaped enormous returns from the surge in Bitcoin, but how long can this model, which relies on the continuous rise in Bitcoin prices, be sustained?**If the price of Bitcoin experiences significant fluctuations, or if U.S. regulators reassess the legal status of Bitcoin, MicroStrategy's stock price and capital structure will be greatly impacted.**

### Related Stocks

- [MSTR.US - Strategy](https://longbridge.com/en/quote/MSTR.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Strategy buys up Bitcoin stock worth $90 million | Strategy CEO Phong Le explains why the company bought a large value of Bitcoin after the stock took a dip on 'The Claman | [Link](https://longbridge.com/en/news/275377169.md) |
| Unpacking the Latest Options Trading Trends in Strategy | Financial giants are bullish on Strategy (NASDAQ:MSTR), with 27 unusual options trades noted. 40% of traders are bullish | [Link](https://longbridge.com/en/news/275479022.md) |
| Lowe's Spokesperson Says Co To Cut About 600 Corporate & Support Roles | Lowe's Companies Inc :LOWE'S COMPANIES : TO REDUCE APPROXIMATELY 600 CORPORATE AND SUPPORT ROLES, LESS THAN 1 PERCENT OF | [Link](https://longbridge.com/en/news/275953193.md) |
| Strategy Buys 1,142 Bitcoin At An Average Price Of $78,815 | Strategy (NASDAQ:MSTR) announced the purchase of 1,142 Bitcoin at an average price of $78,815, totaling $90 million, fun | [Link](https://longbridge.com/en/news/275333625.md) |
| CICC Reaffirms Their Buy Rating on NIO Inc. Class A (9866) | CICC analyst maintained a Buy rating on NIO Inc. Class A yesterday and set a price target of HK$50.00.Valentine's Day Sa | [Link](https://longbridge.com/en/news/275967598.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.