343PG on Nostr: Some good thoughts. Since MSTR will always be seeking to add to their Bitcoin ...
Some good thoughts. Since MSTR will always be seeking to add to their Bitcoin holdings I like to think of the valuation question in Bitcoin terms. I.e. the market is essentially telling us that the present value of all future bitcoin they can get their hands on can double the current bitcoin they hold (per share, being what matters)
Is that valuation bearish? On the basis of the last quarter’s activity alone and how accretive it was, it probably is. However there’s a lot that could slow them down still - we just don’t know whether the market will keep on letting them act accretively for shareholders, and in the longer term (as you mention also) what sort of utility the Bitcoin could have for further earnings to add yet more bitcoin.
Having said all that - the dollar angle for valuation is always going to win out for the foreseeable. And if they are going to become as big as the mag 7 are now, and perhaps eat a chunk of their monetary premium, we may see some much higher earnings multiples applied than right now. Who knows?
Is that valuation bearish? On the basis of the last quarter’s activity alone and how accretive it was, it probably is. However there’s a lot that could slow them down still - we just don’t know whether the market will keep on letting them act accretively for shareholders, and in the longer term (as you mention also) what sort of utility the Bitcoin could have for further earnings to add yet more bitcoin.
Having said all that - the dollar angle for valuation is always going to win out for the foreseeable. And if they are going to become as big as the mag 7 are now, and perhaps eat a chunk of their monetary premium, we may see some much higher earnings multiples applied than right now. Who knows?