Recently, I realized something quite interesting: instead of simply buying Bitcoin, many veteran investors are shifting their attention to MicroStrategy (MSTR). So what is MSTR that makes it so attractive?

Adam Back from Blockstream just spoke on X, pointing out that MSTR stock is trading at a significant discount compared to the Bitcoin holdings the company owns. This creates an interesting opportunity for those who want exposure to Bitcoin but through a different channel.

What is MicroStrategy? It is a software company run by Michael Saylor, someone you could call a staunch "Bitcoin maximalist." The company currently owns about 189,150 BTC, worth over $8 billion. With Bitcoin at the current price of $77.32K, this is an enormous holding.

Back estimates that if we only consider the software operational value of MicroStrategy at around $2 billion, then the reasonable valuation of MSTR stock should be in the range of $625–685. However, the stock has experienced significant volatility—rising to high levels and then dropping considerably.

What exactly is MSTR? It is an indirect way to invest in Bitcoin, but through a company with actual business operations. This differs from buying BTC directly or through ETF funds. When spot Bitcoin ETFs are approved in the U.S., it puts some pressure on this stock, because previously MSTR was used as a "proxy ETF" for Bitcoin.

Analysts point out that even if Bitcoin rises to $200,000, MSTR could still perform worse than direct BTC or new ETF products. Of course, the company also has $2 billion in debt to consider, although Back notes that this is old debt.

Overall, what is MSTR if not a way to participate in the Bitcoin story through a real company? It’s an option worth considering, but one must understand the associated risks and opportunities before making a decision.