Strategy accused of using "deceptive" comparisons with Apple and NVIDIA

Andy Constan, CEO of #DampedSpringAdvisors , accused the company Strategy (formerly MicroStrategy) of deceptively comparing its P/E (price-to-earnings) ratio with S&P 500 companies like Apple and NVIDIA. According to Constan, this move implies that Strategy's earnings are recurring income, while in reality, most of their profits come from the appreciation of the Bitcoin that the company holds.

Unsustainable profits

Constan argues that the profits of #strategy are not sustainable income but merely a "one-time" appreciation from the market. Therefore, comparing their P/E with companies that have stable business models is unreasonable and could mislead investors. Although Strategy's CEO Phong Lee has stated that the company may be one of the most undervalued stocks, Constan warns that if Bitcoin's price drops, the company will face record losses, and that presentation slide could be seen as evidence in litigation.

Securities fraud allegations

Constan's accusations come in the context of Strategy facing class-action lawsuits, alleging that the company made "misleading and distorted" statements about its Bitcoin treasury strategy. #anh_ba_cong