Marcus Thielen of 10x Research believes the stock price is close to its true value. In March, his company estimated MSTR's fair price at around $1,000 and advised investors to prefer direct bitcoin investments.
As of Friday, #MicroStrategy had a market value of US$21.37 billion and held 214,400 #CryptoWatchMay2024 worth US$13.26 billion on its balance sheet.
MicroStrategy is often seen as analogous to a #bitcoin #ETF , but it doesn't have the typical ETF structures such as a market maker or redemption process, so the share price fluctuates wildly depending on market sentiment.
Microstrategies use their own tactics, such as issuing cheap debt to buy more bitcoin, or selling shares at a premium.
Earlier this year, such strategies were criticized by some as unreasonable because of the very high premiums paid for the shares.
However, proponents of this strategy argue that this premium implies that the company will be able to acquire more bitcoins per share in the future.
James Butterfill of Coinshares argues that MSTR is similar to a leveraged bitcoin bet, which is typically 1.5 times the bitcoin price.
He notes that monetary policy affects companies' stock prices more than normal business fundamentals.
Butterfill also noted that the recent drop in the bitcoin price was an overreaction to the FOMC's tentative change in monetary policy, after which the FOMC took a more favorable stance.
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