MicroStrategy, a tech company turned Bitcoin-buying giant, has become the focal point of a fervent online community of investors. With shares surging more than fivefold in 2024, the stock has drawn comparisons to a “cult” phenomenon, as dedicated fans rally behind its co-founder Michael Saylor and his audacious strategy.
Aiden Perez, a 24-year-old software developer in Southern California, remixed a house-music track featuring Saylor’s voice proclaiming, “People that use fiat currency…we call them poor.” The track gained traction on SoundCloud, amassing over 200 plays, coinciding with a 25% jump in MicroStrategy’s stock the following day.
Perez, an ardent Bitcoin believer, exemplifies the die-hard support for MicroStrategy. “If you sell, you’re an investor. If you don’t, you’re in the cult,” he remarked, revealing that he reinvested the proceeds from selling 20 MicroStrategy shares into Bitcoin.
A Leveraged Play on Bitcoin
MicroStrategy’s transformation into a Bitcoin-focused company has made its stock a high-risk, high-reward investment. The firm abandoned its original business model to borrow billions and acquire Bitcoin, resulting in a market value of $89 billion—more than twice the value of the cryptocurrency it holds.
Shares have surged 60% since Election Day, buoyed by bullish sentiment around Bitcoin and the company’s entry into the Nasdaq-100. Trading activity in MicroStrategy shares even surpassed all other U.S. stocks, except Nvidia, at one point in November.
Divisive Opinions on MicroStrategy
Critics warn that MicroStrategy’s rise reflects a speculative bubble. The company faced significant losses in 2022 when Bitcoin plummeted following the collapse of crypto exchange FTX. Even Bitcoin advocates, such as short-seller Andrew Left and Galaxy Digital CEO Mike Novogratz, have expressed concerns about the risks posed by MicroStrategy’s aggressive approach.
However, Saylor’s bold moves have won over many retail investors, some of whom credit their financial success to the stock. Clayton Lunce, a 44-year-old investor, left his job after gains from MicroStrategy shares and Bitcoin transformed his portfolio. “He’s the Bitcoin Bruce Wayne,” Lunce said of Saylor, praising his leadership and vision.
Social Media and Market Mania
MicroStrategy’s rise has been amplified by online communities and social media platforms. Groups like “Irresponsibly Long $MSTR” on X (formerly Twitter) and Discord chat rooms have become hubs for devoted investors to share memes, trade tips, and celebrate their shared enthusiasm.
Jeff Walton and Ryan McGinnis, hosts of the Quant Bros podcast, are among the many investors who have formed close-knit networks around MicroStrategy. McGinnis, who quit his job to focus on trading, likened his partnership with Walton to the iconic duo of Warren Buffett and Charlie Munger.
Despite the enthusiasm, some professional money managers caution against the herd mentality driving these speculative investments. Cliff Asness, co-founder of AQR Capital Management, criticized the influence of social media on markets, describing it as a vehicle for turning “a wise, independent crowd into a coordinated clueless, even dangerous, mob.”
For now, MicroStrategy’s ascent continues to captivate its loyal following, reinforcing Saylor’s reputation as a polarizing figure in the evolving world of cryptocurrency and investment.