MSTR
👎 The speaker believes MicroStrategy is significantly overpriced (‘muy fuera de precio’).
📊 Analysis suggests the company should trade closer to its Net Asset Value (NAV), primarily based on its Bitcoin holdings, but it currently trades at roughly double that value.
❌ While acknowledging funds use MSTR as a Bitcoin proxy, the speaker personally finds no investment sense in it due to the large premium over its underlying asset value.
@bernardodegarcia:
“What do you think of MicroStrategy? Ah, it’s way out of price. MSTR, yes. MicroStrategy for me is a company that should be trading near its net asset value, near its NAV. So you should count, because the company, the business generates nothing. So you should count, you should look in the quarterly or annual report how many Bitcoin MicroStrategy has, and from there, well, you know, if you want to invest in Bitcoin, well, you buy MicroStrategy. Yes, it makes sense. Okay, imagine MicroStrategy has, I don’t know, ah, 1 million Bitcoin, okay? And the company is trading… Bitcoin right now is at 70-80. Well, look, it could have… well, 1 million, I mean, eh, yes, 1 million more or less, right? 1 million, 1 million times 70,000… 70 billion, Bernardo. So it could be closer or further, but MicroStrategy is trading at 77 billion dollars, and Bitcoin is trading at 82 billion dollars. So here I would see, if it had 1 million Bitcoin… but of course, because I’m using it as an example, but it doesn’t have 1 million Bitcoin, it has less, it has like 300-400,000 Bitcoin. Ah, if MicroStrategy had 1 million Bitcoin, I would see it reasonable to buy MicroStrategy because it’s trading below its net asset value, okay? Considering it had no debt, etc., etc., etc. Well, it has debt that it raised at 0%, I mean, brutal. But what happens is that it has, well, about 300,000-400,000 Bitcoin. So you multiply 300,000-400,000, let’s say 400,000… 400,000, I don’t know how much it has, I’m saying it a bit from memory, times 80,000 that Bitcoin is now, more or less, you’re talking about some 32 billion dollars. So MicroStrategy right now is trading, if my calculations are correct and it has 400,000 Bitcoin… we look this up in the quarterly results… it’s trading at double what it should trade for. But well, I don’t know. I mean, for me, it doesn’t make sense. There are other people, funds and so on, that cannot invest in Bitcoin, so they invest in MicroStrategy as a proxy, but they also do it with Coinbase, and it’s a bit more of a hedge fund thing, yari yari. Ah, it doesn’t interest me.”
Watch the exact part of the video where @bernardodegarcia talks about MicroStrategy here:
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Read more articles featuring the most recent analysis of MicroStrategy (MSTR) at this link: MSTR stock.
