Will MicroStrategy Be a Trillion-Dollar Stock by 2030?

The software maker is becoming an all-in bet on the $BTC future.

MicroStrategy (MSTR 5.47%) went through a dramatic transformation over the past four years. Up until 2020, it was a slow-growth analytics software maker that seemed to be losing ground to its nimbler cloud-based competitors. But that year, its co-founder and then-CEO Michael Saylor directed the company to make its first USD 250 million purchase of Bitcoin (CRYPTO: BTC). By the end of April 2024, its Bitcoin holdings had swelled to USD 7.54 billion, which equals roughly a quarter of MicroStrategy's enterprise value of USD 30 billion.

MicroStrategy's massive Bitcoin holdings overshadowed the sluggish growth of its software business, but can it keep growing and become a trillion-dollar stock by 2030?

MicroStrategy's valuation is tethered to Bitcoin's future

MicroStrategy's revenue only increased at a compound annual growth rate (CAGR) of 1% from 2020 to 2023. Like many older enterprise software companies, its core business of on-premise software is struggling to keep pace with cloud-based analytics specialists like Salesforce, integrated analytics tools in cloud infrastructure platforms like Amazon Web Services (AWS) and Microsoft Azure, and niche mobile business intelligence companies like Domo.

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