Strategy's (MSTR 1.84%) stock plunged nearly 60% over the past 12 months. That decline can mainly be attributed to its all-in bet on Bitcoin (BTC 0.99%), which lost almost 30% of its value during the same period. However, a $10,000 investment in Strategy today could still potentially blossom into more than $1 million if its bold bets on Bitcoin pay off.
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Strategy's co-founder, Michael Saylor -- who directed its transformation from a slow-growth software company into the world's largest corporate holder of Bitcoin -- predicts the top cryptocurrency's price will skyrocket from about $68,000 today to $21 million by 2046. If that happens, a $10,000 investment in Bitcoin could grow to $3.09 million. That same investment in Strategy, which plans to continue hoarding Bitcoin, could grow at a similar rate.
NASDAQ: MSTR
Key Data Points
Bitcoin's recent drawdown rattled Strategy's investors, since it dropped below the company's average purchase price of $76,056 per token. However, Saylor recently pointed out that Strategy wouldn't face a liquidation risk unless Bitcoin's price dropped below $8,000 -- the level at which its total Bitcoin holdings would approximate its net debt.
If you're bullish on Bitcoin, it might be smart to accumulate Strategy's shares as a proxy for the cryptocurrency. If Saylor's "Bitcoin Maximalist" thesis pans out, it might just turn a few thousand dollars into a few million over the next few decades.
