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looking at Microstrategy market cap versus it’s earnings
There's a big change in accounting rules coming which will make those ratios look very different, from next quarter. They will be required to report unrealised capital gains as earnings. Having bought loads of bitcoin over the last few years, their unrealised gains are very high, maybe $10bn.
That's not a reason to buy them or not buy them, it's just accounting, not a real change, but some algos or humans following rules might do so as a result. Apparently it might also qualify them for inclusion in indices such as the S&P 500.
The current earnings figure relates to their legacy business intelligence software business while their market cap is based on their bitcoin stash and what they may be able to do with it, so comparing the two doesn't really shed a lot of light on their performance.
Their software earnings allow them to service some of the debt pile they've taken on to buy bitcoin, but given they are now raising large amounts at 0%, even that may not matter so much in future.
As you imply, the conventional investment metrics are not what people buying this are basing their decisions on!
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frank9755
HousecatHST
This is all caveat this with I know nothing about investing. But just looking at Microstrategy market cap versus it’s earnings the disparity in the figures are insane, but that a comparison's that’s for perhaps a more conventional business. That being said the tech sector in general as the same issue currently.