The long BTC, short MSTR pair trade mistakenly assumes that MSTR's premium to its BTC holdings is caused by an irrational market. The premium of MSTR market cap to BTC reserves is justified and comes from having a positive BTC Yield. The valid critique is that MSTR might be approaching a limit to how much convertibles they could issue over time.
Not all stock-split stocks share the same outlook, as these recently completed splits demonstrate.
The path to a trillion-dollar market cap for MicroStrategy is clear: Buy as much Bitcoin as possible.
A recent interview helps explain what MicroStrategy is doing with its strategy to issue securities to buy bitcoin.
This stock-split stock has all the hallmarks of a disaster waiting to happen.
MicroStrategy Incorporated (NASDAQ:MSTR ) Q3 2024 Earnings Conference Call October 30, 2024 5:00 PM ET Company Participants Shirish Jajodia - Vice President of Investor Relations and Treasury Phong Le - President and Chief Executive Officer Andrew Kang - Senior Executive Vice President and Chief Financial Officer Michael Saylor - Executive Chairman Conference Call Participants Shirish Jajodia Hello everyone and good evening. I am Shirish Jajodia, Vice President of Investor Relations and Treasury at MicroStrategy.
MicroStrategy's stock has surged 483% due to its massive underlying Bitcoin holdings and aggressive BTC 'Pyramiding' tactic. The company's strategy involves issuing shares and debt to buy BTC, but its financials are weak, and we think the company is nearing its borrowing capacity. MSTR's valuation is extremely inflated, making it better to buy BTC directly. We recommend a pair trade: Buy BTC, Sell MSTR.
The plan is to use the additional capital ‘to buy more bitcoin as a treasury reserve asset,' the company says.
As the cryptocurrency sector remains a rollercoaster ride for investors, three heavyweights – MicroStrategy Inc. MSTR, Riot Platforms Inc. RIOT, and Coinbase Global Inc. COIN – are gearing up to release their third-quarter earnings on Wednesday.
MicroStrategy NASDAQ: MSTR is a business intelligence software company that helps organizations analyze their data to make better business decisions. But in recent years, MicroStrategy's brand has become synonymous with Bitcoin.
MicroStrategy Inc. MSTR continues its upward sprint, reaching a 52-week high of $236.29 during Thursday trading, with investors rallying behind the stock.
Regardless of who wins the presidency, investors are better off focusing on top growth stocks.