A new era where zombie companies cheat death

a catastrophic time bomb primed to obliterate billions in capital

Jun 4, 2025

Dear Investoreans,

Is this the dawn of a wild new era where zombie companies cheat death by piling into Bitcoin? Are we witnessing financial wizardry or a catastrophic time bomb primed to obliterate billions in capital, especially for retail investors betting their savings on this high-stakes gamble? Buckle up, because MicroStrategy’s transformation under Michael Saylor is a rollercoaster of audacity, leverage, and jaw-dropping risk that could reshape how we view corporate investing or leave a trail of wreckage in its wake.

From Dying Tech Firm to Bitcoin Bonanza

Once a sleepy tech consulting outfit scraping by in a cutthroat industry, MicroStrategy was on life support, until Michael Saylor waved his magic wand. His spell? Reinvent the company as a Bitcoin juggernaut, branding it a “Bitcoin treasury management” strategy to shield against inflation. What sounded like a genius pivot to “digital gold” has spiraled into a heart-pounding, debt-fueled spectacle that’s anything but safe. Let’s peel back the curtain on this high-wire act.

The High-Stakes Play: A Leveraged Bitcoin Bet

Saylor’s vision wasn’t a modest hedge it’s a full-throttle plunge into Bitcoin mania. Here’s the electrifying, and terrifying, reality:

A Mountain of Debt: MicroStrategy has borrowed a staggering $9.3 billion to scoop up 580,250 BTC (as of May 2025), making it one of the planet’s biggest corporate Bitcoin holders. And it’s not stopping Saylor’s “21/21 Plan” aims to raise another $18 billion by 2027 to buy even more. This isn’t caution; it’s a pedal-to-the-metal race.

Convertible Bonds: A Risky Sleight of Hand: To fuel this frenzy, MicroStrategy issued convertible bonds debt that can morph into shares later with dangerously optimistic pricing. These bonds bank on Bitcoin’s volatility (MSTR stock’s 30-day implied volatility is ~106 vs. ~60 for BTC) staying manageable. If Bitcoin tanks, bondholders could demand repayment or dilute shareholders into oblivion, lighting a fuse under the company’s finances.

Perpetual Yield Shares: A Mirage of Returns: Saylor’s “BTC Yield” metric promises value by tying Bitcoin holdings to diluted shares. But with MicroStrategy’s core business bleeding cash (quarterly losses averaging $316 million over the last two years), this is no sustainable engine, it’s a dazzling illusion that collapses if Bitcoin falters.

Not a Hedge, but a Vegas-Style Gamble: Forget prudent risk management. Holding 2.5% of Bitcoin’s circulating supply with billions in debt isn’t a hedge, it’s a white-knuckle bet on Bitcoin’s price soaring indefinitely. One wrong move, and the house of cards tumbles.

A Time Bomb Primed to Explode?

MicroStrategy’s fate is chained to Bitcoin’s wild swings. If the crypto rockets, Saylor’s hailed as a prophet. But if Bitcoin crashes as it’s done before the fallout could be catastrophic:

Debt Overload: With $9.3 billion in debt and scant revenue from its tech roots, a Bitcoin slump could make repayment impossible, forcing fire sales or bankruptcy.

Shareholder Wipeout: Convertible bonds could flood the market with new shares, cratering stock value and crushing investors.

Retail Ruin: Retail investors, lured by Saylor’s charisma and the “digital gold” hype, face the biggest losses. Many poured life savings into MicroStrategy, unaware they’re riding a leverage-fueled rocket with no parachute.

Shareholders Betrayed by a Bait-and-Switch

Investors who bought into MicroStrategy expecting a savvy inflation shield got a Wall Street-style leverage monster instead. Saylor sold a dream of stability but delivered a speculative beast that thrives only if Bitcoin defies gravity. Shareholders didn’t sign up for this—they wanted a hedge, not a high-stakes crypto casino.

Retail’s Blind Faith: A Dangerous Mistake

The retail crowd, swept up in Bitcoin fever and Saylor’s bold rhetoric, sees MicroStrategy as a stroke of genius. They’re dead wrong. This isn’t innovation it’s a precarious bet propped up by unsustainable debt and blind optimism. A single market shock could unravel it all, leaving retail investors holding a bag of shattered dreams.

The Bigger Picture: A New Era or a Financial Fiasco?

Is MicroStrategy the first of many fading companies to chase Bitcoin as a lifeline, conjuring short-term miracles with crypto magic? Or is this a one-off stunt destined to crash and burn, taking billions in capital and retail investors’ hopes with it? The answer hinges on Bitcoin’s future and Saylor’s ability to keep this high-wire act from collapsing.

Your Move: Stay Sharp, Stay Safe

MicroStrategy’s saga is a thrilling but chilling lesson in the dangers of overhyped narratives and unchecked leverage. If you’re holding MSTR stock or eyeing it, scrutinize the risks. Diversify your portfolio, question the “genius” hype, and brace for volatility. This isn’t just a company, it’s a high-stakes experiment that could redefine corporate investing or explode in spectacular fashion.

As Gordon Gekko the Great had said, Greed is good, is right and it’s going to save the United States of America…

Stay bold, stay cautious, and let’s navigate this wild market together!