MicroStrategy’s Current Premium Relative to Its Bitcoin Stack Is Unlikely to Last: Steno Research
Summary
MicroStrategy's current premium relative to its bitcoin holdings is unlikely to persist. The recent 10-for-1 stock split has contributed to a rally, but the premium has surged to nearly 300%, diverging from its asset and business fundamentals. The launch of options on spot bitcoin ETFs in the U.S. will reduce investor motivation to hold MicroStrategy stock over these ETFs. As regulators become more favorable to bitcoin, investors may prefer holding bitcoin directly. Sustaining the current premium requires higher buying demand, which is challenging given historical trends. The stock has surged over 240% year-to-date, reaching a new all-time high.
