🚨MicroStrategy 'highly unlikely' to be forced to sell bitcoin as stock reaches 25-year high, analysts say🚨
•Analysts at BitMEX Research argued MicroStrategy is “highly unlikely” to be forced to sell its bitcoin based on the current debt structure, but “anything is possible.”
•MicroStrategy stock traded at a 25-year high of £235.89 as of Thursday’s close, having gained more than 10% for the day.
•Analysts at BitMEX Research argued MicroStrategy is “highly unlikely” to be forced to sell its bitcoin holdings based on its current debt structure. However, given the volatility of the cryptocurrency, “anything is possible,” they said.
The business intelligence firm is the largest corporate holder of bitcoin, with 252,220 BTC, currently valued at over £17 billion, at a total cost of around £9.9 billion.
MicroStrategy’s stock gained more than 10% on Thursday to reach a 25-year high of £235.89 as of market close, according to TradingView. The firm's £43.6 billion market cap trades at a “massive premium” to the net asset value of its underlying bitcoin holdings — somewhat reminiscent of The Grayscale Bitcoin Trust in prior cycles before its conversion to a spot Bitcoin exchange-traded fund, the analysts said.
#MicroStrategy has been able to leverage premium share issuances to buy more bitcoin and boost book value per share in a so-called “infinite money glitch.” The firm’s five equity offerings since embarking on its bitcoin strategy in 2020 have raised a total of £4.25 billion so far, they noted.
Last week, Benchmark analyst Mark Palmer defended MicroStrategy stock's big premium to its bitcoin holdings, describing it as “intelligent leverage.”
