PANews December 22 news, according to Barron's, the Bitcoin premium of MicroStrategy's stock (measured by the ratio of enterprise value—i.e., market capitalization plus net debt—to the value of the company's Bitcoin holdings) continues to shrink. Currently, the company's valuation is about twice the value of its Bitcoin holdings, which are approximately 439,000 Bitcoins (estimated by Barron's). This ratio has decreased from a peak of 3.5 times in November to the current two times, indicating that MicroStrategy's stock price has failed to keep up with the recent pullback in Bitcoin's price following its breakthrough of $100,000. Given the still high Bitcoin premium in the stock, MicroStrategy's stock price may face more downward space. Currently, MicroStrategy's market capitalization is about $79 billion, with Bitcoin holdings valued at approximately $43 billion, and the company carries $7 billion in debt. The excessively high premium may make MicroStrategy's stock price more prone to a pullback as the premium further contracts.
