Core Viewpoint - MicroStrategy has significantly outperformed Bitcoin since it began its Bitcoin acquisition strategy in August 2020, becoming the best-performing stock in the Fortune 500, outperforming Bitcoin by double or more during this period [2]. Group 1: Company Strategy and Performance - MicroStrategy's operating company balance sheet allows it to leverage equity and debt to opportunistically buy Bitcoin, which is a unique advantage compared to investment companies [1][3]. - The company has acquired an additional $4 billion in Bitcoin this month and successfully priced a convertible notes offering to raise $2.5 billion, which is expected to be used for further Bitcoin acquisitions [5]. - The software business now constitutes less than 10% of MicroStrategy's overall enterprise value, indicating that the Bitcoin strategy has become the primary driver of the company's value [7]. Group 2: Market Dynamics and Valuation - The premium of MicroStrategy's stock relative to the Bitcoin it holds is currently over 200%, which has expanded and is a topic of discussion among investors [4][6]. - A sum of the parts analysis shows that even when backing out the software business, the premium remains significant, highlighting the market's valuation of the company's Bitcoin holdings [7][8]. - The ability to exploit capital markets for Bitcoin acquisitions is a key differentiator for MicroStrategy compared to Bitcoin ETFs, which lack an operating company balance sheet [8].

Michael Saylor MicroStrategy Bitcoin Acquisition Strategy. Photo by BeInCrypto MicroStrategy’s market premium over its Bitcoin holdings has narrowed to near parity, raising questions about the future of Michael Saylor’s levered Bitcoin model.  The latest disclosures show the company holding 649,870 BTC at a cost of roughly $48.4 billion, yet its equity no longer trades at the high multiples that powered earlier expansion. A Collapsing Premium and Rising Capital Pressures The company’s mNAV fell below 1x ...