Wall Street Veteran: Strategy Comparing Itself to Apple and Nvidia Is "100% Fraud"

According to Jinse Finance, Andy Constan, CEO and Chief Investment Officer of Damped Spring Advisors, stated that Strategy (formerly MicroStrategy) misled investors last month when comparing itself to S&P 500 companies. The Wall Street veteran said that in one slide of its Q2 earnings presentation, the Bitcoin-buying company compared its price-to-earnings ratio with companies like Apple and Nvidia, calling this "100% fraudulent." Constan believes the slide implied that Strategy’s earnings are recurring, when in fact its performance growth is driven by a "one-time, mark-to-market" increase in the value of its Bitcoin holdings. He added, "They are pitching this income to investors, promoting it as recurring earnings worthy of a high P/E ratio. This is deceptive."