Strategy Pushed ‘Deceptive’ Comparison to Apple and NVIDIA, Wall Street Veteran Says

Key Points

1. Strategy compared its P/E ratio to S&P 500 firms like Apple and NVIDIA, implying recurring earnings, but its performance was driven by a one-off increase in Bitcoin's value.

2. Andy Constan called the comparison '100% fraudulent' and 'deceptive,' while macro analyst Lyn Alden disagreed with the P/E comparison but did not label it as fraudulent.

3. Strategy's shares fell 4.35% to $372.92, down 11% from $447 over the past month, despite a 33% year-to-date increase.

4. Bitcoin's price dropped 3.7% to just above $118,000 after hitting an all-time high above $124,000.

5. Strategy reported a $10 billion Q2 profit, largely from Bitcoin price swings, but faces criticism for how it portrays earnings under new GAAP rules.

6. A lawsuit alleges Strategy misled investors about its Bitcoin strategy, which the company denies, vowing to defend itself.