Michael Saylor’s bitcoin announcements no longer seem to pump MSTR stock
Investors dumped Strategy (formerly MicroStrategy) stock following Michael Saylor’s four most recent bitcoin purchase announcements.
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Investors dumped Strategy (formerly MicroStrategy) stock following Michael Saylor’s four most recent bitcoin purchase announcements.
— Michael Saylor, MicroStrategy
Any blackout could devastate MicroStrategy investors who have come to expect weekly BTC buys from Executive Chairman Michael Saylor.
MicroStrategy’s premium to its bitcoin holdings, sometimes called its NAV premium, has dropped one-third from its November all-time high.
Bitcoin hit an all-time high above $100K on Wednesday, yet MicroStrategy fell 4.8% the following day and closed 28% below its all-time high.
Bitcoin and MicroStrategy are both rallying with win-win math for bondholders and shareholders. Of course, the party can’t last forever.
Michael Saylor’s Class B MicroStrategy stock outvoted Class A 10:1, but so much Class A now exists that he has lost voting control.
In 2023, MicroStrategy’s average bitcoin purchase price was near $30,000. Today, that average has jumped to near $50,000.
MicroStrategy executives boasted about the ability to yield higher bitcoin exposure per MSTR share over time. We read the fine print.
This month alone, Michael Saylor has sold over $70 million worth of MicroStrategy stock, while in March he sold $144 million.
Buying MSTR appears to earn you 98% value in MicroStrategy’s bitcoin, but when including Class B shares and convertibles, it's less than 85%.