Examining the Best Investment Product Ever Made

This article examines MicroStrategy’s unconventional approach to corporate finance—issuing equity and zero-coupon convertible debt and issuing shares to accumulate Bitcoin. Using historical data and expanded Monte Carlo simulations, the authors estimate the probability of Bitcoin’s price declining below critical levels over a typical five- to seven-year debt-maturity window. Results show that the strategy remains solvent except under extreme structural breaks in Bitcoin’s long-term growth. Dilution, rather than insolvency, emerges as the primary equity holder risk. Comparative analysis versus crypto-fund benchmarks demonstrates that MicroStrategy’s stock exhibits the risk-adjusted return profile of a moderately leveraged digital-asset fund. Broader adoption of this model could reshape corporate treasury management, influence monetary policy, and accelerate the integration of digital assets into conventional finance.

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Publication Details

Journal
The Journal of Alternative Investments
Published
2026-02-18
DOI
https://doi.org/10.3905/jai.2026.1.264
Primary Topic
Blockchain Technology Applications and Security
Type
article
Field-Weighted Citation Impact
0.00
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article

Examining the Best Investment Product Ever Made

Todd Feldman, Chris Yost-Bremm
The Journal of Alternative Investments
Blockchain Technology Applications and Security
article

Examining the Best Investment Product Ever Made

Todd Feldman, Chris Yost-Bremm
article en

Abstract

This article examines MicroStrategy’s unconventional approach to corporate finance—issuing equity and zero-coupon convertible debt and issuing shares to accumulate Bitcoin. Using historical data and expanded Monte Carlo simulations, the authors estimate the probability of Bitcoin’s price declining below critical levels over a typical five- to seven-year debt-maturity window. Results show that the strategy remains solvent except under extreme structural breaks in Bitcoin’s long-term growth. Dilution, rather than insolvency, emerges as the primary equity holder risk. Comparative analysis versus crypto-fund benchmarks demonstrates that MicroStrategy’s stock exhibits the risk-adjusted return profile of a moderately leveraged digital-asset fund. Broader adoption of this model could reshape corporate treasury management, influence monetary policy, and accelerate the integration of digital assets into conventional finance.

The Journal of Alternative Investments
San Francisco State University (US)
Openalex Percentile: Top 66%
Blockchain Technology Applications and Security
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