MicroStrategy (Strategy) stock fell 3.31% in intraday trading today to $223.38, according to data from Coinglass.
The company’s market capitalization is estimated to be around $65.34 billion, but this figure falls short of the estimated market value of the 641,692 Bitcoins it holds (approximately $66.59 billion). This caused MSTR stock to temporarily trade at a “discount” to the net value of its Bitcoin holdings.
According to MicroStrategy data, the company holds a total balance of 641,690 Bitcoins, with an average purchase price of $74,080. The company currently has a profit of about 39% due to the rise in Bitcoin prices.
MicroStrategy (MSTR) stock typically trades at a premium compared to the company’s Bitcoin holdings. This means investors are pricing in not only Bitcoin reserves, but also Michael Saylor’s strategic management, potential future Bitcoin purchases, and the company’s software revenue. This suggests that market participants currently believe it makes more sense to buy Bitcoin directly than to buy Strategy stock.
*This is not investment advice.
