In the podcast What Bitcoin Did, financial expert Andy Constan criticized the actions of Strategy, which compared its P/E (price-to-earnings) ratio with similar ratios of Apple and NVIDIA during its second quarter 2025 financial results presentation. According to Constan, such a comparison is manipulative and misleads investors about the actual repeatability of the company’s earnings.
This is reported by Finway
Criticism of Strategy’s Methods and Analysts’ Reactions
Strategy, the largest public Bitcoin holder in the world, emphasized in its presentation that its P/E ratio is comparable to leading technology companies in the S&P 500. However, Constan pointed out that Strategy’s earnings were driven by a one-time increase in the market value of Bitcoin assets, rather than stable sources of income. He explained that the company is trying to present these earnings as regular and deserving of a multiplier valuation, although in reality, this misleads investors.
“They are marketing [this income] to investors as recurring profit that deserves a multiplier. This is misleading,” Constan added.
Analyst Lyn Alden, who also participated in the podcast, expressed doubts about such an approach, although she disagreed with the claim of “fraud.” She noted that she does not support the use of such charts to compare Strategy’s P/E with other companies.
Financial Results and Further Criticism
In the second quarter of 2025, Strategy reported an unrealized profit of $14 billion, with revenues reaching $114.5 million, the majority of which came from software and technical support. The company also began accounting for its Bitcoin assets at fair value, reflecting quarterly market fluctuations. Constan warns that a sharp drop in Bitcoin’s price could lead to record losses for the company, which already suffered $5.9 billion in losses in the first quarter due to the cryptocurrency’s decline.
The expert also compared Strategy’s business model to a Ponzi scheme, emphasizing that the company raises funds by issuing new shares to acquire Bitcoins and has no ability to pay dividends without new investments. Additionally, a class-action lawsuit has been filed against Strategy and its management for allegedly false and misleading statements regarding the profitability of its Bitcoin strategy. The company’s management has promised to actively defend its interests in court.
In response to the criticism, Strategy’s CEO Fong Li emphasized that the company’s P/E ratio is one of the lowest among the S&P 500, and the company remains undervalued both in the U.S. and globally. Meanwhile, in May, investor and hedge fund founder Jim Chanos called Strategy’s approach “absurd,” yet by July, the company conducted the largest cryptocurrency IPO of 2025 at $2.5 billion.
In conclusion, Constan emphasized that the historical significance of the slide from the presentation could become a symbol of financial deception.