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