Are Stock Prices of Bitcoin-Purchasing Companies Truly Justified?

In August 2020, the U.S. business intelligence firm Strategy (formerly MicroStrategy) suddenly captured global attention. As the first publicly traded company to adopt a Bitcoin purchasing policy, it aimed to create unprecedented corporate value. This move, driven by the strong conviction of co-founder and chairman Michael Saylor, initially seemed peculiar.

However, as Bitcoin's price rose, so did Strategy's stock price, gradually changing public perception. The surge in stock price was backed by 'bold foresight' in recognizing the value of Bitcoin and establishing a position as a 'safe haven' for investors who wanted to invest in Bitcoin but considered the risks too high for direct investment.

Although Strategy's stock price has been volatile in line with Bitcoin's price, it recorded an all-time high in November 2024. At the time of writing, the stock price remains about 3,000% higher than at its IPO, transforming from a mere 'Bitcoin-purchasing company' to 'one of the world's leading Bitcoin holders.' As of this article, the company's Bitcoin holdings have exceeded 550,000 BTC.

The strategy of purchasing Bitcoin to enhance corporate value is now being adopted more widely by listed companies worldwide, including in Japan, where various firms have bought Bitcoin, boosting their stock prices.

On the other hand, the stock prices of companies that purchase Bitcoin often fluctuate wildly in sync with Bitcoin's price. While Strategy's strategy has become a model for stock price increases, it is becoming unclear whether the corporate value and stock prices are truly justified. However, considering the success model of Strategy, there is still a significant potential for stock prices of similar companies to rise in the future. From an investor's perspective, it is an extremely difficult choice to make.