I just realized an interesting thing about how savvy investors are currently viewing the Bitcoin market. Instead of just buying BTC directly, they are looking for other indirect tools to participate in this trend. Specifically, MicroStrategy (MSTR) — a software company that has become one of the largest Bitcoin holders in the world.

What is MSTR that it attracts so much attention? Simply put, it is a software business operated by Michael Saylor — a person who claims to maximize Bitcoin value. The notable point is that this company has shifted its entire financial strategy to accumulate Bitcoin instead of holding cash. Currently, they hold about 189,150 BTC, equivalent to nearly $15 billion at the current price of around $78K.

Adam Back — head of Blockstream — recently made an interesting observation on X. He argued that MSTR is trading at a very attractive price relative to the amount of Bitcoin the company actually owns. According to Back’s calculations, if you separate the value of the software business operations (about $2 billion) from the value of the Bitcoin holdings, MSTR stock should be trading at $625–685.

But what actually happens? After Bitcoin ETF funds officially launched earlier this year, this stock was heavily sold off, dropping to $482 in mid-January — a 30% decline from its high. It seems investors have shifted towards more direct ETF tools rather than using MSTR as a proxy fund for Bitcoin.

What is MSTR in this context? It’s both an opportunity for those seeking a combination of Bitcoin exposure and a real business, but also a potential trap if you don’t understand how it works. Critics of Back’s view point out that the company still owes $2 billion, which increases the risk.

Overall, MicroStrategy’s story shows that an indirect approach isn’t always better than a direct one. With Bitcoin at $78K, investors need to carefully consider whether they want pure Bitcoin exposure or are willing to accept the additional complexities of a business company.