MicroStrategy Bitcoin Treasury Strategy Explained! Will MSTR flywheeling be a disaster or not?

There is some room for discussion in this argument, but it is not entirely reasonable overall because it simplifies the MSTR business model and ignores transparency and voluntary investor participation.

MSTR, as a publicly traded company, raises funds through the issuance of shares and bonds in the open market (the "MSTR").(Over US$25 billion of new shares to be issued in 2025)Retail investors can buy MSTR stocks or bonds, thus indirectly exposing themselves to BTC price volatility. This is not directly "buying BTC with retail money" but is part of corporate finance, a strategy that Saylor has publicly touted as "digital gold" and which has attracted investors who believe in the long-term value of Bitcoin.

As of February 2026, MSTR was the most shorted $25B+ stock on Wall Street, with a short position of ~14% of market capitalization (Goldman Sachs data). Bitcoin holdings still have an unrealized loss of about $7 billion, and software business revenues have taken a backseat. short-sellers such as Kerrisdale Capital have even pointed out that once mNAV falls below 1 for a prolonged period of time, the flywheel will break and the stock could crash.

From a risk perspective, MSTR's strategy is indeed high-risk, high-reward, and looks like a "bet" on the future of BTC, which has seen extreme price volatility (e.g., a drop of more than 70% from the highs of 2021 to the lows of 2022), and a dramatic swing in MSTR's share price as a result. But this isn't just gambling, as it's based on Saylor's macroeconomic thesis (anti-inflation) and backed by an enterprise software business. It's more of a leveraged investment than a traditional stock, rather than a mindless gamble. Regulators such as the SEC have approved the financing as a legitimate investment strategy.