Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Wednesday, July 2
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Bitcoin»Somthing is going on with bitcoin and Microstrategy
    Bitcoin

    Somthing is going on with bitcoin and Microstrategy

    October 11, 20242 Mins Read


    Bitcoin daily

    Bitcoin is up 4.5% today as it erases the past two days of selling. It’s a nice move but leaves it right back to where it’s been for the past eight months. Wake me up when it breaks the $50-70K range.

    What does have my attention today is Microstrategy, which is one of the easiest companies in the world to value. The reason is that it has 97% of its assets invested in bitcoin.

    Despite that, it’s trading at an all-time high today and up 12%.

    MSTR daily

    That’s a big disconnect between the value of the company’s bitcoin holdings and the company itself. Shares are trading at 2.5 times the value of its bitcoin holdings, which is non-sensical and breaks matches the highs from Feb 2021 — a time when markets were euphoric.

    According to CoinDesk, it’s bitcoin holdings are worth $15.1 billion and its market cap was $37.14 billion yesterday before including today’s massive rally.

    Something is amiss here.

    I suspect a fund that could be long bitcoin and short MSTR is puking out the position.

    One firm, Kerrisdale Capital has publicized that strategy in the past:

    None of the reasons commonly provided for MicroStrategy’s relative
    attractiveness justify paying well over double for the same coin.
    MicroStrategy’s trading history and basic common sense suggests the
    current inflated premium will contract, much as it has on prior
    occasions, providing a compelling opportunity for a pair trade.

    Now I doubt that firm is big enough to move the market so much but the strategy looks like such low-hanging fruit that others were surely drawn in as well.

    If bitcoin was breaking out, I would expect that premium to expand but it’s only up 4.5% today and still a ways from $70K. Maybe the MSTR market is front-running a breakout?

    It’s possible but something is off here and it has my attention. I don’t think it’s the time to short MSTR right now because that chart is really breaking out but at some point that premium to NAV needs to narrow and I don’t think that’s far off. In the meantime, watch how far this squeeze runs and it potentially becomes a meme.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleInside Track On The Wall Street Embrace Of Bitcoin And Digital Assets
    Next Article MicroStrategy Aims to Be ‘Bitcoin Bank’ With Trillion-Dollar Valuation: Michael Saylor

    Related Posts

    Bitcoin

    Bitcoin lth Un profit non réalisé s’accidentellement des niveaux d’octobre 2024: ce que cela pourrait signifier pour le prix

    July 1, 2025
    Bitcoin

    Michael Saylor offre une vérité bitcoin chaude à Elon Musk

    July 1, 2025
    Bitcoin

    Bitcoin vient de flasher le signal de survente. Est-ce que le rebond très attendu arrive?

    July 1, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Action Ganglong China Property Group Limited | Cours 6968 Bourse Hong Kong S.E.

    July 31, 2007

    les fondamentaux de l’or restent bons

    September 4, 2007

    les fondamentaux de l’or restent bons

    September 4, 2007
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Utilities

    Utility Bills to Pay for More Green Energy and Equity

    October 27, 2024
    Property

    Public Property Invest acquiert des actifs dans le secteur de la santé en Finlande

    May 30, 2025
    Bitcoin

    Bitcoin à stade critique – Niveaux de prix à regarder: analyste

    May 5, 2025
    What's Hot

    L’offre de Bitcoin illiquide dépasse 14 millions de BTC au milieu du FOMO institutionnel

    June 27, 2025

    Conn. Judge Rejects Utility’s Defenses In Site Cleanup Battle

    October 24, 2024

    7 raisons de célébrer ce record historique !

    May 21, 2025
    Most Popular

    Augmentum Fintech plc – Capital Markets Day Update

    June 17, 2025

    Les principales cryptomonnaies reculent ; le Bitcoin se maintient au-dessus de 107 000 $

    June 26, 2025

    European stocks steady after inflation, unemployment data; Ericsson shines By Investing.com

    October 15, 2024
    Editor's Picks

    Transaction in own shares

    July 29, 2024

    Bitcoin is still a speculative asset: Former Bridgewater Associates CIO

    August 5, 2024

    Bitcoin Price Eyes Fulti-Year Breakout alors que les entrées de FNB ont atteint 1,3 milliard de dollars

    June 14, 2025
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2025 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.