Den Yellek on Nostr: MSTR is a company that trades at a multiple or a premium to its underlying BTC ...
MSTR is a company that trades at a multiple or a premium to its underlying BTC holdings.
Currently one share of MSTR trades at $330. The current value of the BTC held by MSTR per share is $150. People refer to this difference as the NAV premium or the premium you are paying for a share over the Net Asset Value. Currently this premium is at 2.2x.
The bear case for MSTR is that over time the NAV premium will trend towards 1x. Meaning that the stock will trade without a premium over the BTC held per share.
The bull case is that the NAV premium will increase. Meaning that MSTR will outperform bitcoin. It has previously traded at a premium of over 3x so even a return to this would mean you have outperformed just holding BTC. Some bulls predict much higher premiums if MSTR was to be valued based on its earnings vs just being valued based on BTC holdings.
Another reason to hold MSTR is that as they purchase more your BTC per share will increase. MSTR refers to this as the bitcoin yeild. The year to date bitcoin yeild has been 73%.
you can find a lot of info and track all these metrics at. https://www.mstr-tracker.com/
At the end of the day it comes down to your belief that either the bitcoin held per share will grow sufficiently such that it compensates for a reduction in NAV premium or that you believe the NAV premium will trade higher in the future.
Currently one share of MSTR trades at $330. The current value of the BTC held by MSTR per share is $150. People refer to this difference as the NAV premium or the premium you are paying for a share over the Net Asset Value. Currently this premium is at 2.2x.
The bear case for MSTR is that over time the NAV premium will trend towards 1x. Meaning that the stock will trade without a premium over the BTC held per share.
The bull case is that the NAV premium will increase. Meaning that MSTR will outperform bitcoin. It has previously traded at a premium of over 3x so even a return to this would mean you have outperformed just holding BTC. Some bulls predict much higher premiums if MSTR was to be valued based on its earnings vs just being valued based on BTC holdings.
Another reason to hold MSTR is that as they purchase more your BTC per share will increase. MSTR refers to this as the bitcoin yeild. The year to date bitcoin yeild has been 73%.
you can find a lot of info and track all these metrics at. https://www.mstr-tracker.com/
At the end of the day it comes down to your belief that either the bitcoin held per share will grow sufficiently such that it compensates for a reduction in NAV premium or that you believe the NAV premium will trade higher in the future.