Apr 29, 2024 - Economy
Charted: MSTR vs. BTC
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MicroStrategy's shares are trading at a smaller premium to its bitcoin holdings than before, according to TD Cowen analyst Lance Vitanza.
Context: MSTR, in Wall Street speak, is a leveraged play on bitcoin.
- MicroStrategy's bitcoin buying started in August 2020, when the company took out debt, convertible or otherwise, to fund its purchases.
Of note: At peaks, the market put a 140% premium on MSTR's bitcoin holdings, but that's down to around 90%, Vitanza said last week.
Behind the scenes: He's headed to Las Vegas this week for MicroStrategy's World 2024 conference; he's looking for more details about the company's plans to be a "bitcoin development company."
- He also wants to know if MicroStrategy plans to buy more bitcoin, and how.
- Vitanza wants to know if there will be another at-the-market offering filing, which would signal more BTC buying.
💭 Our thought bubble: 🤞Let's hope whatever happens in Vegas is communicated to the rest of us.
