Michael Saylor mixes up his ‘treasuries’ in misleading MSTR tweet
Michael Saylor, founder of Strategy (formerly MicroStrategy), referred to the company as 'digital treasuries' in a tweet, which sparked confusion and scrutiny. While Saylor clarified that he considers Strategy a digital asset treasury (DAT), the company's own filings state that shareholders do not own the Bitcoin (BTC) it holds, contradicting traditional dictionary definitions of a treasury. Saylor also described MSTR as 'amplified BTC,' a claim deemed vague and inconsistent with performance metrics, as MSTR has underperformed BTC since February 2024. These statements raise doubts about the company's portrayal of its role in the digital and BTC markets.
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Michael Saylor's Controversial Claim About MSTR
Strategy (formerly MicroStrategy) founder Michael Saylor has broadcasted many dubious claims over the years, but this week’s likening of MSTR to “digital treasuries” might take the cake. At first glance, Saylor’s tweet might mislead some into believing that he referred to MSTR as a type of treasury bond — as in a US Treasury. However, a careful review of the lengthy presentation attached to the tweet reveals that he merely meant to call Strategy — the business — a digital asset treasury (DAT).
MSTR’s Misrepresentation as Digital Treasuries
Still, the claim that MSTR is a company in the digital treasuries sector is incredible when considering dictionary definitions. Rather than being an actual treasury that holds assets for a saver, Strategy holds bitcoin (BTC) that it repeatedly assures shareholders they will never own. In numerous filings with the Securities and Exchange Commission (SEC), including its most recent quarterly earnings report, the company clearly states to MSTR shareholders that they don’t own Strategy’s BTC:
“Ownership of our securities, including our class A common stock and preferred stock, does not represent an ownership interest in, or a redemption right with respect to, the bitcoin we hold,” it explains.
Contrasting Treasury Definitions with Strategy's Claims
This statement stands in contrast to the dictionary definition of treasury, which refers to a place in which stores of wealth are kept. No MSTR shareholder stores their BTC in Strategy’s treasury, and the BTC in Strategy’s treasury does not store MSTR shareholders’ wealth. For months, the company has published variations of this disclaimer to clarify that MSTR isn’t a BTC treasury — by the company’s own admission — except in name only.
Saylor's Claim of MSTR as 'Amplified BTC'
During the same presentation, Saylor also described MSTR as “amplified BTC.” This claim is equally incredible and vague enough to avoid the scrutiny of his earlier statement regarding MSTR as digital treasuries. While it’s true that the enterprise value of MSTR exceeds the value of the BTC it holds by 21%, its multiple-to-Net Asset Value (mNAV) of 1.21x has been declining for over a year.
MSTR vs. BTC Performance
Rather than amplifying the returns of BTC, any MSTR holder has lost money versus simply holding BTC since February 2024. Only over much longer timeframes has MSTR outperformed BTC.
Related Analysis
Read more: How Jim Chanos outplayed Michael Saylor: short MSTR, long BTC.