I'm curious to know, for those investing in MicroStrategy Incorporated (MSTR), how much does the company's
Bitcoin holdings cost per share? With MicroStrategy's significant investment in bitcoin, it's important for investors to understand the financial implications of this strategy and how it affects the overall value of each share. Given the volatile nature of cryptocurrency, how do analysts and investors determine the approximate cost per share of MSTR's bitcoin holdings? Any insights into how this cost may fluctuate over time would be greatly appreciated.
5 answers
Giulia
Fri Jul 12 2024
To put this into perspective, if we apply an average NASDAQ price-to-sales multiple of 5x to the company's last twelve months (LTM) revenues, a generous assumption, it would equate to a market capitalization of $2.5 billion.
Chloe_carter_model
Fri Jul 12 2024
However, even with this optimistic valuation, the premium stands at a noteworthy 75%.
SilenceSolitude
Fri Jul 12 2024
This suggests that the market is placing a significant amount of value on factors beyond just the underlying bitcoin holdings.
CryptoLegend
Fri Jul 12 2024
It could be attributed to the company's operational efficiency, growth prospects, or other strategic advantages it possesses.
Martina
Fri Jul 12 2024
This represents a significant premium of 91% over MSTR's bitcoin holdings, which are valued at $892 per share.