MicroStrategy CEO Michael Saylor speaks at the Bitcoin 2021 Convention, a crypto-currency conference held at the Mana Convention Center in Wynwood on June 04, 2021 in Miami, Florida.
Joe Raedle | Getty Images
MicroStrategy was founded almost 35 years ago and existed for most of its history as a little-known software company focused on business intelligence.
But in 2023, the stock has soared 337%, making it one of the biggest gainers in the U.S. among companies valued at $5 billion or more, topping Nvidia’s 234% rally and Meta’s 194% surge.
Unlike its tech peers, which rely on revenue growth and market share gains to fuel their stock prices, MicroStrategy’s investor appeal is almost exclusively due to bitcoin. The company began buying the cryptocurrency in mid-2020 and has since amassed roughly 174,530 bitcoins, worth about $7.65 billion as of late Friday.
Wall Street is so enamored by the story that the stock has about doubled bitcoin’s gain this year.
“It’s really bitcoin,” said Joseph Vafi, an analyst at Canaccord Genuity who has a buy recommendation on the stock. “All the other stuff is healthy and doing a good job, they’re not neglecting it. It’s doing well, it’s leading software in its sector. But it’s basically something we don’t have to worry about.”
MicroStrategy’s market cap is $8.5 billion, meaning 90% of its valued is tied directly to its bitcoin holdings. When bitcoin plummets or soars, so does MicroStrategy. In 2022, bitcoin’s 64% drop pushed MicroStrategy down 74%. Even after its huge pop this year, MicroStrategy shares are still below where they were trading at their high in 2021, during peak crypto.
The bitcoin strategy dates back to July 2020, when the company said it would start putting some of its cash towards alternative assets, including digital currencies. At the time, MicroStrategy had a market cap of roughly $1.1 billion, built on a software business that had been shrinking since 2015. Annual revenue was just under $500 million, and profit was minimal.
At the halfway point of 2020, MicroStrategy had just over $530 million in cash and short-term investments on its balance sheet. Co-founder Michael Saylor, who was CEO at the time, saw that money sitting virtually idle on the sidelines due to low interest rates and wanted to put it to work.
From there, he had to decide whether equities, precious metals or bitcoin would be the best use of funds.
“The reason we decided to buy bitcoin is because bitcoin represents a form of digital gold,” Saylor said on the first earnings call after the company announced its strategy. “It’s harder than gold. It’s smarter, it’s stronger, it’s faster than gold.”
Saylor’s decision created a way for investors to have stake in bitcoin through routine purchases of stock, rather than having to buy the coins directly. Saylor, who stepped down as CEO last year and assumed the role of executive chairman, told CNBC’s Morgan Brennan last week that he expects the bull market in bitcoin to continue next year. He said 99.9% of the capital in the world is invested in real estate, stocks, bonds and commodities, with only 0.1% allocated toward bitcoin.
“People, as they get educated on digital assets, are realizing that they ought to be allocating more and more of their capital to this digital asset and so they’re moving from .1 to .2%,” said Saylor, who co-authored a book about bitcoin last year titled “What is Money?”
Novel use of cash
MicroStrategy isn’t the first company to put some of its cash pile into alternative investments, and it’s not the last to look for ways to generate outsized returns on that money. Earlier this month, GameStop gave CEO Ryan Cohen, who gained minor celebrity status as an investor, permission to use company cash to purchase stock.
But MicroStrategy is unique in that it’s become viewed almost exclusively as a bitcoin holding company.
“Michael Saylor’s kind of a visionary,” said Vafi. “He saw this as an opportunity to really exploit the fact that they had a lot of cash and a pristine balance sheet and start this bitcoin treasury experiment. And it’s worked out well and so they’re continuing down that path.”
In analyzing why MicroStrategy’s stock has so dramatically outperformed bitcoin this year, Vafi described it as a “scarcity premium,” because there are limited ways for equity investors to tap the market.
That’s potentially changing in the new year, as investors gear up for a flurry of bitcoin exchange-traded funds (ETFs). Currently, there are bitcoin futures ETFs, which are comprised of contracts to buy and sell bitcoin but not of the cryptocurrency itself. And investors can buy into the Grayscale Bitcoin Trust, a fund that owns bitcoin and trades over the counter rather than on a major exchange.
Grayscale sued the SEC last year after the regulator denied its application to create a spot bitcoin ETF on concerns about investor protections. In August of this year, an appeals court ruled in favor of Grayscale, a decision than many in the industry viewed as paving the way for a new crop of ETFs. Asset managers, including BlackRock, Fidelity and Invesco, have filed with the SEC for their own products.
Vafi said the prospect of competition poses little threat to MicroStrategy.
“I call it right now a very high-class problem to a certain degree,” he said. “If a bitcoin ETF gets approved, the price of bitcoin is probably headed higher and potentially materially higher.”
MicroStrategy also presents more than just a bet on the direction of bitcoin. While ETFs are passively managed, MicroStrategy has the option to put its bitcoin holdings to work, using them, for example, as collateral to create more business opportunities.
“MicroStrategy is encouraged by the continuing maturity of the regulatory environment around bitcoin as well as the increased institutional demand that we are seeing today,” Shirish Jajodia, the company’s vice president of treasury and investor relations, told CNBC in an email. “We do believe it will have a positive impact on the adoption of bitcoin by mainstream investors as well as corporations.”
MicroStrategy’s software business is a big plus too, Saylor said on the company’s most recent earnings call. It’s a proven cash flow generator, enabling the company to buy more bitcoin, he said.
For the many investors betting against MicroStrategy, it’s been a tough year.
As of early December, crypto stock short sellers were down $6.1 billion for the year, with the rally in Coinbase hurting them the most, according to S3 Partners. In the first three quarters of the year, short sellers spent $2.19 billion covering their bets, the firm said, with the majority of the buying in Coinbase and MicroStrategy.
Short sellers this year have lost $4 billion on Coinbase and $1.4 billion on MicroStrategy, according to data provided by S3 last week. Some 23% of MicroStrategy’s shares available to the public are shorted, S3 said, which is second highest among crypto companies, behind only bitcoin miner Marathon Digital. The average for U.S. stocks is 5%.
MicroStrategy shows no signs of slowing down when it comes to snapping pu bitcoin. The company said it purchased roughly 16,130 bitcoins in November for over $593 million, even with the price continuing to rise. That’s more bitcoin than it’s bought in any full quarter since the first three months of 2021.
Hidden among the majestic canyons of the Utah desert, about 7 miles from the nearest town, is a small research facility meant to prepare humans for life on Mars.
The Mars Society, a nonprofit organization that runs the Mars Desert Research Station, or MDRS, invited CNBC to shadow one of its analog crews on a recent mission.
“MDRS is the best analog astronaut environment,” said Urban Koi, who served as health and safety officer for Crew 315. “The terrain is extremely similar to the Mars terrain and the protocols, research, science and engineering that occurs here is very similar to what we would do if we were to travel to Mars.”
SpaceX CEO and Mars advocate Elon Musk has said his company can get humans to Mars as early as 2029.
The 5-person Crew 315 spent two weeks living at the research station following the same procedures that they would on Mars.
David Laude, who served as the crew’s commander, described a typical day.
“So we all gather around by 7 a.m. around a common table in the upper deck and we have breakfast,” he said. “Around 8:00 we have our first meeting of the day where we plan out the day. And then in the morning, we usually have an EVA of two or three people and usually another one in the afternoon.”
An EVA refers to extravehicular activity. In NASA speak, EVAs refer to spacewalks, when astronauts leave the pressurized space station and must wear spacesuits to survive in space.
“I think the most challenging thing about these analog missions is just getting into a rhythm. … Although here the risk is lower, on Mars performing those daily tasks are what keeps us alive,” said Michael Andrews, the engineer for Crew 315.
Formula One F1 – United States Grand Prix – Circuit of the Americas, Austin, Texas, U.S. – October 23, 2022 Tim Cook waves the chequered flag to the race winner Red Bull’s Max Verstappen
Mike Segar | Reuters
Apple had two major launches last month. They couldn’t have been more different.
First, Apple revealed some of the artificial intelligence advancements it had been working on in the past year when it released developer versions of its operating systems to muted applause at its annual developer’s conference, WWDC. Then, at the end of the month, Apple hit the red carpet as its first true blockbuster movie, “F1,” debuted to over $155 million — and glowing reviews — in its first weekend.
While “F1” was a victory lap for Apple, highlighting the strength of its long-term outlook, the growth of its services business and its ability to tap into culture, Wall Street’s reaction to the company’s AI announcements at WWDC suggest there’s some trouble underneath the hood.
“F1” showed Apple at its best — in particular, its ability to invest in new, long-term projects. When Apple TV+ launched in 2019, it had only a handful of original shows and one movie, a film festival darling called “Hala” that didn’t even share its box office revenue.
Despite Apple TV+being written off as a costly side-project, Apple stuck with its plan over the years, expanding its staff and operation in Culver City, California. That allowed the company to build up Hollywood connections, especially for TV shows, and build an entertainment track record. Now, an Apple Original can lead the box office on a summer weekend, the prime season for blockbuster films.
The success of “F1” also highlights Apple’s significant marketing machine and ability to get big-name talent to appear with its leadership. Apple pulled out all the stops to market the movie, including using its Wallet app to send a push notification with a discount for tickets to the film. To promote “F1,” Cook appeared with movie star Brad Pitt at an Apple store in New York and posted a video with actual F1 racer Lewis Hamilton, who was one of the film’s producers.
(L-R) Brad Pitt, Lewis Hamilton, Tim Cook, and Damson Idris attend the World Premiere of “F1: The Movie” in Times Square on June 16, 2025 in New York City.
Jamie Mccarthy | Getty Images Entertainment | Getty Images
Although Apple services chief Eddy Cue said in a recent interview that Apple needs the its film business to be profitable to “continue to do great things,” “F1” isn’t just about the bottom line for the company.
Apple’s Hollywood productions are perhaps the most prominent face of the company’s services business, a profit engine that has been an investor favorite since the iPhone maker started highlighting the division in 2016.
Films will only ever be a small fraction of the services unit, which also includes payments, iCloud subscriptions, magazine bundles, Apple Music, game bundles, warranties, fees related to digital payments and ad sales. Plus, even the biggest box office smashes would be small on Apple’s scale — the company does over $1 billion in sales on average every day.
But movies are the only services component that can get celebrities like Pitt or George Clooney to appear next to an Apple logo — and the success of “F1” means that Apple could do more big popcorn films in the future.
“Nothing breeds success or inspires future investment like a current success,” said Comscore senior media analyst Paul Dergarabedian.
But if “F1” is a sign that Apple’s services business is in full throttle, the company’s AI struggles are a “check engine” light that won’t turn off.
Replacing Siri’s engine
At WWDC last month, Wall Street was eager to hear about the company’s plans for Apple Intelligence, its suite of AI features that it first revealed in 2024. Apple Intelligence, which is a key tenet of the company’s hardware products, had a rollout marred by delays and underwhelming features.
Apple spent most of WWDC going over smaller machine learning features, but did not reveal what investors and consumers increasingly want: A sophisticated Siri that can converse fluidly and get stuff done, like making a restaurant reservation. In the age of OpenAI’s ChatGPT, Anthropic’s Claude and Google’s Gemini, the expectation of AI assistants among consumers is growing beyond “Siri, how’s the weather?”
The company had previewed a significantly improved Siri in the summer of 2024, but earlier this year, those features were delayed to sometime in 2026. At WWDC, Apple didn’t offer any updates about the improved Siri beyond that the company was “continuing its work to deliver” the features in the “coming year.” Some observers reduced their expectations for Apple’s AI after the conference.
“Current expectations for Apple Intelligence to kickstart a super upgrade cycle are too high, in our view,” wrote Jefferies analysts this week.
Siri should be an example of how Apple’s ability to improve products and projects over the long-term makes it tough to compete with.
It beat nearly every other voice assistant to market when it first debuted on iPhones in 2011. Fourteen years later, Siri remains essentially the same one-off, rigid, question-and-answer system that struggles with open-ended questions and dates, even after the invention in recent years of sophisticated voice bots based on generative AI technology that can hold a conversation.
Apple’s strongest rivals, including Android parent Google, have done way more to integrate sophisticated AI assistants into their devices than Apple has. And Google doesn’t have the same reflex against collecting data and cloud processing as privacy-obsessed Apple.
Some analysts have said they believe Apple has a few years before the company’s lack of competitive AI features will start to show up in device sales, given the company’s large installed base and high customer loyalty. But Apple can’t get lapped before it re-enters the race, and its former design guru Jony Ive is now working on new hardware with OpenAI, ramping up the pressure in Cupertino.
“The three-year problem, which is within an investment time frame, is that Android is racing ahead,” Needham senior internet analyst Laura Martin said on CNBC this week.
Apple’s services success with projects like “F1” is an example of what the company can do when it sets clear goals in public and then executes them over extended time-frames.
Its AI strategy could use a similar long-term plan, as customers and investors wonder when Apple will fully embrace the technology that has captivated Silicon Valley.
Wall Street’s anxiety over Apple’s AI struggles was evident this week after Bloomberg reported that Apple was considering replacing Siri’s engine with Anthropic or OpenAI’s technology, as opposed to its own foundation models.
The move, if it were to happen, would contradict one of Apple’s most important strategies in the Cook era: Apple wants to own its core technologies, like the touchscreen, processor, modem and maps software, not buy them from suppliers.
Using external technology would be an admission that Apple Foundation Models aren’t good enough yet for what the company wants to do with Siri.
“They’ve fallen farther and farther behind, and they need to supercharge their generative AI efforts” Martin said. “They can’t do that internally.”
Apple might even pay billions for the use of Anthropic’s AI software, according to the Bloombergreport. If Apple were to pay for AI, it would be a reversal from current services deals, like the search deal with Alphabet where the Cupertino company gets paid $20 billion per year to push iPhone traffic to Google Search.
The company didn’t confirm the report and declined comment, but Wall Street welcomed the report and Apple shares rose.
In the world of AI in Silicon Valley, signing bonuses for the kinds of engineers that can develop new models can range up to $100 million, according to OpenAI CEO Sam Altman.
“I can’t see Apple doing that,” Martin said.
Earlier this week, Meta CEO Mark Zuckerberg sent a memo bragging about hiring 11 AI experts from companies such as OpenAI, Anthropic, and Google’s DeepMind. That came after Zuckerberg hired Scale AI CEO Alexandr Wang to lead a new AI division as part of a $14.3 billion deal.
Meta’s not the only company to spend hundreds of millions on AI celebrities to get them in the building. Google spent big to hire away the founders of Character.AI, Microsoft got its AI leader by striking a deal with Inflection and Amazon hired the executive team of Adept to bulk up its AI roster.
Apple, on the other hand, hasn’t announced any big AI hires in recent years. While Cook rubs shoulders with Pitt, the actual race may be passing Apple by.
Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC.
Kevin Dietsch | Getty Images
Tesla CEO Elon Musk, who bombarded President Donald Trump‘s signature spending bill for weeks, on Friday made his first comments since the legislation passed.
Musk backed a post on X by Sen. Rand Paul, R-Ky., who said the bill’s budget “explodes the deficit” and continues a pattern of “short-term politicking over long-term sustainability.”
The House of Representatives narrowly passed the One Big Beautiful Bill Act on Thursday, sending it to Trump to sign into law.
Paul and Musk have been vocal opponents of Trump’s tax and spending bill, and repeatedly called out the potential for the spending package to increase the national debt.
The independent Congressional Budget Office has said the bill could add $3.4 trillion to the $36.2 trillion of U.S. debt over the next decade. The White House has labeled the agency as “partisan” and continuously refuted the CBO’s estimates.
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The bill includes trillions of dollars in tax cuts, increased spending for immigration enforcement and large cuts to funding for Medicaid and other programs.
It also cuts tax credits and support for solar and wind energy and electric vehicles, a particularly sore spot for Musk, who has several companies that benefit from the programs.
“I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!” Trump wrote in a social media post in early June as the pair traded insults and threats.
Shares of Tesla plummeted as the feud intensified, with the company losing $152 billion in market cap on June 5 and putting the company below $1 trillion in value. The stock has largely rebounded since, but is still below where it was trading before the ruckus with Trump.
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Tesla one-month stock chart.
— CNBC’s Kevin Breuninger and Erin Doherty contributed to this article.