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U.Today – MicroStrategy (MSTR), a business intelligence firm, is in the news again. At this point, there is speculation that the Michael Saylor-led firm plans to issue 10 billion MSTR shares to buy an additional $3 trillion (BTC).
The analyst eliminates micro-strategy rumors
Jeff Park, head of Alpha Strategies at Bitwise Asset Management, expressed his disbelief in the speculation in a post on X. Park’s tone, saying such a move is unrealistic and flatly dismissed it.
Mainly the figure is huge. To Park, it seems absurd for a company to invest $3 trillion. Interestingly, Bitcoin’s total market capitalization at its current market value is less than $2 trillion. Therefore, since MicroStrategy is worth about 85 billion dollars, it is almost impossible to pull off such a move.
Beyond the surface, Park addressed critical issues among some investors who are backing away from MSTR due to BTC price volatility. He referred to a previous post explaining the risk surrounding MSTR and its price performance from the perspective of the crypto market.
The price of Bitcoin and MSTR
In particular, Park clarified that MicroStrategy’s significant investment in Bitcoin would cause the company’s stock price to be pegged to BTC. He said that if MSTR dips to zero, the price of Bitcoin will be negatively affected.
However, he reassured readers that even if Bitcoin falls to a low of $30,000, MSTR will still not fall to zero.
Park pointed out that MicroStrategy has several capital extension strategies and additional levers to beat the broader market. This coincides with a report from U.Today, where Adam Teback, CEO of Blockstream, confirmed that MicroStrategy shares are undervalued, believing they are cheap.
Park also says that investors should avoid getting confused with MSRL whenever the price of Bitcoin drops. As of this writing, BTC price was trading at $97,548 in an impressive market recovery of 3.95%.
