10x Research: MicroStrategy stock price is 60% higher than it should be worth
10x Research has posted on social media stating that MicroStrategy's stock is overvalued by 60%, and in reality, the stock price may be overvalued by nearly 100%. A year ago, MicroStrategy's stock price did not have a premium compared to Bitcoin, but now it has become a typical representative of the Bitcoin bull market, while the discount price of Grayscale GBTC represents the typical representative of the 2022 bear market. In fact, the trading price of the stock should be close to $1000, not in the range of $1700 to $2000.
MicroStrategy’s holdings are just 5,000 BTC shy of 1% of Bitcoin’s theoretical maximum supply
According to Cointelgraph, MicroStrategy has submitted a $500 million application for convertible senior notes this week and plans to use the funds to purchase more Bitcoin. Assuming that the price of Bitcoin remains at its current level of around $73,000, MicroStrategy will be able to purchase 6,800 Bitcoins with the newly raised funds. Currently, MicroStrategy holds 205,000 BTC, only 5,000 BTC away from 1% of the theoretical maximum supply of Bitcoin. If they were to use all of the newly raised $500 million to purchase Bitcoin, their holdings would exceed 1% of the theoretical maximum supply of Bitcoin.
MicroStrategy completes $800 million convertible notes offering
Michael Saylor, the founder of MicroStrategy, stated on social media that MicroStrategy has completed the issuance of $800 million in convertible notes, with an interest rate of 0.625% and a conversion premium of 42.5%. After deducting discounts and commissions for initial buyers and estimated issuance expenses payable by MicroStrategy, the net proceeds from the sale of the notes are approximately $782 million. MicroStrategy will use the net proceeds from the sale of the notes to purchase additional Bitcoin.
MicroStrategy led the rise in U.S. blockchain concept stocks, with gains reaching 18.86% today.
According to market data, on March 4th, MicroStrategy's stock price is currently reported at $1273.58, with a increase of 18.86%. In addition, Coinbase rose 6.64% today, and Marathon Digital Holdings rose 5.74%.
Crypto sector gains continue, with MicroStrategy up 3%
The US stock market opened with the Dow rising 0.18%, the S&P 500 rising 0.42%, and the Nasdaq rising 0.74%. The cryptocurrency sector continues to rise, with Coinbase (COIN.O) up 3%, MicroStrategy (MSTR.O) up 3%, and ProShares Bitcoin Strategy ETF up 5%.
Microstrategy buys approximately 3,000 Bitcoins for approximately $155.4 million in cash
Microstrategy stated that from February 15th to February 25th, the company and its subsidiaries purchased approximately 30,000 bitcoins for approximately $155.4 million in cash, with each bitcoin priced at approximately $51,813.
MicroStrategy’s Bitcoin holdings exceed $10 billion in value
With today's short-term surge in Bitcoin prices exceeding $53,000, MicroStrategy's Bitcoin holdings have floated more than $4.1 billion, with a total of 190,000 Bitcoins held and an average purchase price of $31,224 per coin. MicroStrategy's total Bitcoin holdings have surpassed $10 billion in value.
Vanguard, an American asset management company, holds 8.24% of MicroStrategy's shares and is its second largest institutional shareholder.
On January 13th, it was reported that US asset management company Vanguard is one of the largest shareholders of MicroStrategy. As of September 2023, Vanguard holds an 8.24% stake in the company, making it the second largest institutional shareholder.
Cryptocurrency-related stocks open lower, MicroStrategy drops more than 6%
The US stock market opened with the Dow Jones down about 85 points, the S&P 500 index down 0.5%, and the Nasdaq down 0.82%. Cryptocurrency-related stocks opened lower, with Marathon Digital (MARA.O) down over 10%, Riot Blockchain (RIOT.O) down over 10%, Coinbase (COIN.O) down nearly 7%, and MicroStrategy (MSTR.O) down over 6%.
MicroStrategy Co-Founder Michael Saylor to Sell $216 Million in Stock Options to Buy More Bitcoin for Personal Account
MicroStrategy co-founder Michael Saylor plans to sell $216 million worth of stock options in the company to buy more Bitcoin for his personal account. Saylor, a vocal proponent of Bitcoin, has already acquired 189,150 BTC for MicroStrategy, worth over $8.5 billion at today's prices. He also holds 17,732 BTC in his personal account, worth just over $800 million at current prices. Saylor will exercise and sell 5,000 shares each trading day, starting on January 2nd and ending on April 25th, subject to a minimum price condition.
