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U.Today – MicroStrategy (MSTR), the business intelligence company, is in the news again. At this time, there are speculations that the company led by Michael Saylor plans to issue 10 billion MSTR shares to buy an additional $3 trillion worth of (BTC).
Analyst dismisses MicroStrategy rumors
Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, gave reasons not to believe the speculation in a post on X. Park’s tone suggested disbelief, due to the unrealistic nature of the move, and rejected it is completely.
Basically, the number is huge. To Park, it seems unrealistic for a company to invest $3 trillion in one asset. Interestingly, the total market capitalization of Bitcoin today at the market price is less than $2 trillion. Therefore, pulling off such a move is almost impossible, since MicroStrategy is worth about $85 billion.
Aside from the face, Park also addressed the critical issues of some potential investors who are holding back on MSTR due to BTC price fluctuations. He referenced a previous post that explained the fears surrounding MSTR and its price performance relative to the crypto market.
The value of Bitcoin and MSTR
Notably, Park clarified that MicroStrategy’s heavy investment in Bitcoin made the value of the company’s shares tied to BTC. He noted that if MSTR were to dip to zero, the value of Bitcoin would be negatively affected.
However, he assured readers that even if Bitcoin falls to a record low of $30,000, MSTR will still not crash to zero.
Park emphasized that MicroStrategy has several capital extension strategies and additional levers to win in the broader market. This is in line with a report by U.Today, where Adam Back, Blockstream CEO, maintains that MicroStrategy shares are cheap, believing that they are undervalued.
Furthermore, Park maintained that investors should avoid being bearish on MSTR whenever the price of Bitcoin drops. As of this writing, BTC price is trading up 3.95% at $97,548 in a surprising market rebound.
