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

Michael Saylor's company, MSTR, has seen a significant downturn, dropping 6.6% in one day as Bitcoin fell below $100,000. This brings MSTR’s decline to 30% year-to-date, while a year-over-year comparison shows a 36% drop. Despite the losses in the short term, MSTR’s shares are still substantially higher than when the firm adopted a Bitcoin treasury strategy in August 2020. As MSTR currently holds 641,692 Bitcoin, valued at approximately $63.2 billion, its market cap stands at around $60 billion. This situation has led discussions on social media suggesting that the stock may be undervalued, as it trades below the value of its Bitcoin holdings. However, this analysis excludes MSTR’s preferred and debt issuances, which raise its enterprise value to $75.4 billion, suggesting that the stock is not priced at a discount in relation to its Bitcoin assets. MSTR’s market performance continues to reflect ongoing volatility in the cryptocurrency sector and investor sentiment.

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