ChainCatcher message, BitMEX Research stated on social media that currently, MicroStrategy (MSTR) stock price has a huge premium compared to the value of its held Bitcoin, approximately 256% premium when fully diluted. Part of the reason may be that some financial regulatory agencies prohibit people from purchasing Bitcoin ETFs. However, investors are very eager for Bitcoin exposure, so they buy MSTR regardless of the premium.
In addition, MSTR has a 'yield strategy' in place. Since MSTR is trading at a premium, the company can issue new shares and buy more Bitcoin. This would then increase the Bitcoin holdings behind each share. If the premium continues to exist, the company can continue to issue new shares.
MSTR's current premium rate is 256%. Based on this premium, when each share of MSTR actually represents a value of $474 in Bitcoin holdings, MicroStrategy would need to issue 157 million shares (currently 102 million shares) to raise $157 billion, with the stock price rising to $1,685 per share, reaching a market capitalization of $674 billion, and holding 1.9 million Bitcoins.
BitMEX Research believes that such price performance and rising model is a 'Ponzi scheme' and is unreasonable.
