Strategy Seeks to Dethrone Nvidia with Ambitious Market Cap Goal

Michael Saylor of Strategy, a company he co-founded, says his strategy aims to make it the world's biggest company by market capitalization. In an earnings call last week, Saylor presented the firm's flywheel capital strategy.

The first step in this goal is for the company to own the most capital in the form of Bitcoin. Strategy then aims to generate a 30% annual return on its reserves in BTC. By issuing what it calls 'the strongest credit', Strategy believes it can create 'the best equity', its common stock, MSTR.

Strategy has a current market capitalization of around $36 billion. To surpass Nvidia's valuation and become the world's biggest company by market cap, it would need an upside of approximately $5.26 trillion, roughly 140-145 times from today's level. This, however, is based on NVDA's current valuation, which would likely be higher by the time MSTR reaches this level.

Saylor said that Strategy believes its next trillion-dollar opportunity lies not in accumulating more Bitcoin but in building a business on top of it. The company reported quarterly revenue of $122.39 million last week, missing consensus estimates of $122.91 million.