PakGazette – MicroStrategy (MSTR), the business intelligence company, is in the news again. This time, it is speculated that the Michael Saylor-led company plans to issue 10 billion MSTR shares to purchase an additional $3 trillion worth of (BTC).
Analyst Dispels MicroStrategy Rumors
Jeff Park, head of Alpha strategies at Bitwise Asset Management, offered reasons not to believe the speculation in a post about X. Park’s tone suggests disbelief, given the unrealistic nature of such a move, and he dismisses it out of hand.
First of all, the figure is astonishingly huge. For Park, it sounds absurd for a company to invest $3 trillion in an asset. Interestingly, the total market cap of Bitcoin currently at market price is less than $2 trillion. Therefore, making such a move would be almost impossible, as MicroStrategy is worth around $85 billion.
Beyond the surface, Park also addressed critical issues among some potential investors holding back from MSTR due to BTC price fluctuations. He referenced a previous post explaining fears around MSTR and its price performance relative to the crypto market.
Bitcoin and MSTR Valuation
In particular, Park clarified that MicroStrategy’s heavy investment in Bitcoin makes the company’s stock value intrinsically tied to BTC. He noted that if MSTR were to fall to zero, the value of Bitcoin would be negatively affected.
However, he assured readers that even if Bitcoin falls to an all-time low of $30,000, MSTR still will not fall to zero.
Park highlighted that MicroStrategy has multiple capital extension strategies and additional levers to win in the broader market. This is in line with a report from PakGazette, where Adam Back, CEO of Blockstream, maintains that MicroStrategy shares are cheap, believing they are undervalued.
Additionally, Park maintains that investors should avoid being bearish on MSTR every time Bitcoin price drops. At the time of writing, BTC price was up 3.95% at $97,548 in a surprising market rebound.
