A well-known software company once gained fame for betting on Bitcoin. It currently holds over 670,000 BTC, accounting for more than 3.2% of the global circulating supply, making it a key risk source in the crypto ecosystem.

To accumulate these Bitcoins, the company spent over $50 billion—mainly financed through debt and stock issuance. Ironically, its annual software revenue is only $460 million, which is negligible compared to its massive Bitcoin exposure. In other words, the entire enterprise is now essentially a Bitcoin fund wrapped in a software shell.

The numbers are even more striking. By the end of 2025, the company's market cap is expected to be around $45 billion, while the value of the Bitcoin it holds could be between $59 billion and $60 billion—meaning its on-paper holdings are worth more than the company's total valuation. Investors have discounted its stock mainly due to concerns over equity dilution, debt black holes, and long-term sustainability. The company's average cost basis is approximately $74,972 per BTC, with over 95% of its valuation locked in by Bitcoin prices—if the coin's price weakens, the entire company could collapse.

Recent data provides a vivid example. Since early October, Bitcoin has fallen by 20%, but the company's stock has performed even worse—losing more than twice the Bitcoin’s decline during the same period. This is the magnifying effect of high leverage: the larger the position and the heavier the debt, the more deadly the price volatility.