Michael Saylor's MSTR Is Down, but Maybe Not as Cheap as Thought

Michael Saylor's MSTR has experienced a significant drop of 6.6% as bitcoin fell back below $100,000, marking a 30% decline year-to-date and 36% year-over-year. The stock is now priced at $210, reflecting levels unseen since the weeks leading to the 2024 presidential election. Despite these declines, MSTR continues to trade at a premium compared to its bitcoin holdings, with its 641,692 bitcoins valued at $63.2 billion, surpassing the company's market cap of $60 billion.However, when accounting for preferred shares and debt obligations, the enterprise value of MSTR rises to $75.4 billion, indicating that the stock is not trading at a discount relative to its bitcoin assets. Some analysts suggest this discrepancy indicates that MSTR may still be overpriced, despite social media speculation suggesting it as a buy opportunity due to its market cap being below the value of its BTC stack.

Source 🔗