The best performing stock of this year in the entire world [Analysis]

MicroStrategy has transformed from a business intelligence software company into what's essentially a Bitcoin treasury vehicle under Michael Saylor.

• Currently holds over 310,000 BTC
• YTD performance: 500%+
• 5-year performance: ~2,600%

The Strategy is an Infinite Money Glitch essentially:

1. Issue convertible bonds at 0% interest
2. Use the money to buy Bitcoin
3. As BTC price rises, stock rises (with leverage)
4. Premium valuation allows them to issue more shares at higher prices
5. Rinse and repeat

However the risk is quite large imho:

1. Trading at 2-3x NAV (paying $2-3 for every $1 of Bitcoin)
2. Leverage cuts both ways, a 10% BTC drop could mean 30%+ stock drop
3. Potential debt obligations if BTC price crashes
4. Premium isn't guaranteed and depends on market sentiment

However the craziest thing is:

1. Potential index inclusion (S&P 500/NASDAQ)

2. Future yield/interest earning possibilities on BTC holdings

3. This isn't just another Bitcoin play, it's potentially a new model for corporate treasury management. Saylor has essentially created a publicly-traded, leveraged Bitcoin vehicle that amplifies both gains and losses.

This is either brilliant financial engineering and the returns have been astronomical, this isn't the same as buying Bitcoin directly, you're betting on both BTC and Saylor's strategy.

Personally, I think this is fascinating but incredibly risky. For most investors, especially those who can't stomach massive volatility, direct BTC exposure is better.