U.Today – MicroStrategy (MSTR) News

MicroStrategy, led by Michael Saylor, is rumored to issue 10 billion MSTR shares to acquire an additional $3 trillion worth of Bitcoin (BTC).

Analyst Dispels MicroStrategy Rumors

Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, doubts the speculation in a post on X. He describes the proposal as unrealistic and dismisses it outright.

He points out that $3 trillion is an absurd investment, especially when the current market capitalization of Bitcoin is less than $2 trillion. With a valuation of around $85 billion, such a move is nearly impossible for MicroStrategy.

Bitcoin and MSTR's Valuation

Park further discusses investor hesitations regarding MSTR, noting volatility in Bitcoin prices affects potential investors. He emphasizes that MicroStrategy’s significant investment in Bitcoin links its share value closely to BTC, stating if MSTR declines, Bitcoin's value will also suffer.

However, he reassures that even if Bitcoin drops to $30,000, MSTR would not plummet to zero.

Park cites MicroStrategy's diverse capital strategies that could help the company thrive. This is echoed by Adam Back, Blockstream CEO, who believes MSTR shares are undervalued. Investors are urged to avoid being overly pessimistic about MSTR when Bitcoin's price falls. Currently, BTC is trading up by 3.95% at $97,548, indicating a market rebound.

This article was originally published on U.Today