MicroStrategy's "Operational Asset": A Unique Perspective

The sources suggest a unique interpretation of MicroStrategy's business model, positioning its shareholders as the "operational asset." This concept stems from the observation that the company's strategy heavily relies on generating and selling volatility to convertible bondholders, who profit through gamma trading.

Here's a breakdown of the reasoning behind this assertion:

* MicroStrategy's Core Business: At its core, MicroStrategy is a software company. However, its software business is not profitable, meaning it does not generate enough cash to cover its expenses, let alone generate returns for investors.

MicroStrategy's "Operational Asset": A Unique Perspective

The sources suggest a unique interpretation of MicroStrategy's business model, positioning its shareholders as the "operational asset." This concept stems from the observation that the company's strategy heavily relies on generating and selling volatility to convertible bondholders, who profit through gamma trading.

Here's a breakdown of the reasoning behind this assertion:

* MicroStrategy's Core Business: At its core, MicroStrategy is a software company. However, its software business is not profitable, meaning it does not generate enough cash to cover its expenses, let alone generate returns for investors.