Analysis: The MSTR stock price has a premium of 256% compared to its Bitcoin holdings, which is not a reasonable price performance

2024-11-21 20:15:18

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ChainCatcher news, BitMEX Research posted on social media that currently, MicroStrategy (MSTR) stock price has a huge premium compared to the value of its held Bitcoin, approximately 256% when fully diluted. Part of the reason may be that some financial regulators prohibit people from purchasing Bitcoin ETFs. However, investors are very eager for Bitcoin exposure, so they buy MSTR despite the premium.

In addition, MSTR has a "yield strategy." Since MSTR is trading at a premium, the company can issue new shares and buy more Bitcoin. This would then increase the Bitcoin holdings behind each share. If the premium continues to exist, the company can keep issuing new shares.

MSTR's current premium rate is 256%. Based on this premium, when each share of MSTR actually represents a Bitcoin holding valued at $474, MicroStrategy would need to issue 157 million shares (currently 102 million shares) to raise $157 billion, with the stock price rising to $1,685 per share, resulting in a market capitalization of $674 billion and holding 1.9 million Bitcoins.

BitMEX Research believes that such price performance and rising model is a "Ponzi scheme" and is unreasonable.

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MSTR Bitcoin holdings Ponzi scheme

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