An interesting phenomenon worth noting — a publicly listed company in the United States recently made a large purchase of over 1,000 Bitcoin in December, bringing its total reserves to 5,427 coins, which directly boosted its stock price. It sounds good, but there are some interesting details.

The stock price has fallen 67.9% over the past three months, which is quite eye-catching. But looking at a longer time frame, from the beginning of the year until now, it has still increased by 7.3%, indicating significant volatility. Currently, the stock price is at $1.91, with a P/E ratio of only 10.6 — compared to the average of 32.7 in the software industry, it indeed appears cheap.

The key issues are coming. First, Bitcoin's price itself is highly volatile, and the company's performance is directly affected by these fluctuations. Second, the projected annual net profit is expected to decline by 45.8%, which is no small number. The low valuation sounds attractive, but the risks and profit decline pressures behind it cannot be ignored. How to strategize — everyone has their own ideas.