Replying to Avatar Learn About Bit

Do you think MicroStrategy is overvalued?

They have 210,840,000 shares outstanding and hold 386,700 Bitcoin.

386,700 / 210,840,000 = .00183 BTC per share.

At a current price of $97,000 per Bitcoin, that’s $178 worth of Bitcoin per share… current share price is $396.

They will constantly be acquiring more Bitcoin, but they will also be diluting their shares in the process. They sell new stock ATM and their convertible debt holders will convert to shares in the future.

MSTR will continue to grow larger through this strategy, but are we overlooking the risk of significant share dilution as investors?

Just thinking out loud here.

#bitcoin #microstrategy
Avatar
Orange Pilled Dictator 1y ago

I think a common mistake is to consider it only as a single snap shot in time. If the price gets ahead of itself, does that mean it's time to sell? If nostr:npub15dqlghlewk84wz3pkqqvzl2w2w36f97g89ljds8x6c094nlu02vqjllm5m continues to run the playbook, I think it's worth it to hold.

Reply to this note

Please Login to reply.

Discussion

Avatar
Learn About Bit 1y ago

I wonder if MicroStrategy stock can actually outperform Bitcoin over a long period of time. If they’re stacking bitcoin by diluting shares then it seems like that would cancel out the added value proposition of the additional bitcoin.

But for MicroStrategy it’s great because your company is growing in size.