The article makes it sound like one needs an esoteric narrative to explain the premium to NAV that MSTR is currently trading at.<p>That is not the case. MSTR has a simple business: "Give us money, we invest it into Bitcoin for you and shield you from the downside. In return, we get some of the upside."<p>As long as the Bitcoin price goes up, that is a viable business. How much it is worth depends on how many customers they will find in the future. It does NOT depend on their NAV. The premium to NAV simply reflects the market's valuation of their future business potential.
The current bull run, as far as I can tell seems to have two legs.<p>One is retail YOLOing into it like a meme coin.<p>The other is professional investors who want bitcoin exposure but are bound by investment mandates to equities only.<p>Neither of these are particularly good reasons long term, nor will they endure a pullback in bitcoin price.
It’s bitcoin. What are you going to say?<p>Obviously, it went up in value and down in value and it doesn’t make much sense over the long term. Currently, governments are tolerating the loophole of it being used to launder money, purchase illicit goods and evade financial border controls.<p>As long as that is tolerated, it will be successful and when governments start to crack down it won’t be successful, because it sucks as a currency but seems to make a pretty good tulip bulb.<p>Probably an unpopular opinion, but as someone who’s purchased a few things with bitcoin, it has insane transaction fees, is not easy to use and is not a stable store of value, so why people would flock to it as money other than the above reasons is beyond me.
Definitely interested to see how the MicroStrategy share price pans out as the 2025 bull run comes to a close.<p>Lots of water yet to go under the bridge though.
For anyone curious about what Saylor is actually thinking, it is good to spend some time listening to this recent interview.<p><a href="https://www.youtube.com/watch?v=R87vco0jHvo" rel="nofollow">https://www.youtube.com/watch?v=R87vco0jHvo</a>
The reality is the microstrategy is to allow investor which cannot directly own bitcoin, or bitcoin etfs, to own bitcoin. There is a premium associated with this (which am suspending analysis on), microstrategy's overshot price.<p>Any other description is an act of mental gymnastics.