Strive CIO Explains the Structure That Lets MicroStrategy’s Stock Beat Bitcoin

Core Argument - The narrative surrounding MicroStrategy (MSTR) should focus on its structural ability to increase Bitcoin exposure per share over time rather than merely acting as a leveraged Bitcoin proxy [2][3]. Company Overview - MicroStrategy began accumulating Bitcoin in June 2021, with the stock initially trading at approximately 2.5 times its market net asset value (mNAV) [3]. - By late 2022, the company held 129,999 Bitcoin, with its notional debt briefly exceeding asset value, yet the underlying financial structure remained intact [3][4]. Investment Thesis - The capital structure of MicroStrategy is viewed as a key factor in its long-term value proposition, with the belief that market timing is less critical than the company's ability to compound Bitcoin exposure [4][6]. - By mid-2023, the company had significantly increased its Bitcoin holdings to 672,497, which is over 12 times that of the next largest publicly traded corporate holder [5]. Risk Profile and Valuation - The risk profile of MicroStrategy's shares has improved, with the net asset value (NAV) per share now being 160% greater than the initial 2.5x mNAV shares purchased in June 2021 [6]. - The rising NAV floor has surpassed the original cost basis, indicating a positive shift in the company's valuation dynamics [6][7].