MicroStrategy: Shares Should Trade At A Premium
Summary
- MicroStrategy shares have surged due to its unique strategy of leveraging Bitcoin and issuing debt and equity to grow Bitcoin holdings per share.
- The company's 21/21 plan aims to raise $42 billion to buy more Bitcoin, enhancing shareholder value through increased Bitcoin yield.
- The net asset value per share is estimated at $111.13 as of 12/31, but shares trade at a premium due to expected high Bitcoin yield growth.
- Despite volatility, I believe MicroStrategy is a buy, as its Bitcoin yield strategy promises substantial long-term returns if Bitcoin prices continue to rise.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Noah Cox (main account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.
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