I just noticed something quite interesting — professional investors are starting to look at MicroStrategy (MSTR) from a completely different perspective. If you don’t know what MSTR is, it’s basically a software company, but the special thing is that it has become one of the largest Bitcoin holders in the world under the leadership of CEO Michael Saylor.

This week, Adam Back from Blockstream shared a rather in-depth analysis on X. He argued that MSTR’s stock is trading at a significant discount compared to its intrinsic value. According to recent updates, the company holds about 189,150 BTC worth over $8 billion. If we consider only their software operations value (around $2 billion), Back estimates that the fair value of MSTR should be around $10.5 to $11.5 billion.

This means that, according to Back’s logic, the stock price of MSTR should be in the range of $625–$685 per share. Looking back at history, MSTR increased from $329 to $685 by the end of Q4 2023, outperforming Bitcoin’s growth during that period. Both benefited from the excitement around approved Bitcoin ETF funds.

But then everything changed. When the ETFs actually launched, MSTR was heavily sold off, dropping to $482 in mid-January 2024 — a 30% decline from the peak. Perhaps because many people previously used MSTR as an indirect way to gain exposure to Bitcoin, but once official ETF funds appeared, they shifted to simpler tools.

There’s debate that MSTR might still be expensive when factoring in the company’s $2 billion debt. However, Back pointed out that this debt has existed for a long time and will be paid off over time. Some analyses suggest that even if Bitcoin rises to $200,000, MSTR could still perform worse than pure BTC.

In any case, MicroStrategy continues to grow its Bitcoin holdings — increasing by 36% during this period. With Bitcoin currently at $66,890, the question of what MSTR is and why it matters remains a topic many are watching. It’s not pure Bitcoin, but it’s a way to gain Bitcoin exposure through a company with actual operations behind it.