MicroStrategy: Paying $245,000 Per Bitcoin Makes No Sense

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Hataf Capital
326 Followers
(12min)

Summary

  • Initiate a Sell rating on MSTR due to severe overvaluation, with a 150% premium over Bitcoin's value and an inefficient corporate structure.
  • MSTR's Bitcoin holdings are valued at $32.4 billion, but its market cap is $80 billion, making investors pay $245,000 per Bitcoin.
  • MicroStrategy's software business is in decline, with revenues falling 10.3% YoY and significant operating losses, raising concerns about its sustainability.
  • Recommend direct Bitcoin purchases or ETFs like IBIT for better tax efficiency and 1:1 Bitcoin exposure, avoiding MSTR's speculative premium.
The Power of Crypto currency and digital wallets. Transforming Industries and Customer Service. A Look into the Future. Yellow Bitcoin icon on smart phone. 3D render

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The recent election victory of Donald Trump has catalyzed a remarkable surge in cryptocurrency related assets, with MicroStrategy (NASDAQ:MSTR) shares rallying more than 46% in just two weeks. This political development has fueled optimism about a more favorable regulatory environment for

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