Experts are raising concerns about MicroStrategy‘s (NASDAQ:MSTR) increasingly leveraged Bitcoin (CRYPTO: BTC) strategy, as its Net Asset Value (NAV) premium narrows and the pace of its Bitcoin acquisitions slows.
Analysts tell Benzinga the market is maturing beyond reliance on singular entities like MicroStrategy, and the company must now demonstrate strategic value beyond simply holding Bitcoin.
This shift marks a critical juncture as the cryptocurrency market seeks sustainable growth independent of individual players.
A Protos story highlights that in the past month, MSTR declined 12% while Bitcoin rose 3%.
This discrepancy has raised questions about the sustainability of MicroStrategy’s approach, particularly as its software business becomes increasingly negligible and the company has become almost entirely a Bitcoin proxy.
Despite the company holding $45 billion in Bitcoin, its $88 billion market cap is supported by a 93% premium, which has been steadily decreasing since Nov. 20.
MicroStrategy’s NAV Premium Decline Signals Market Maturation
Experts point to several reasons for the narrowing NAV premium, a key metric reflecting the market’s valuation of MSTR relative to its Bitcoin holdings.
Azeem Khan, co-founder of Morph, states the shrinking premium is primarily due to “dilution—MicroStrategy issuing more shares to buy Bitcoin spreads value thinner, making each share less appealing” and …Full story available on Benzinga.com
What MicroStrategy’s (Declining) Net Asset Value Premium Really Means For Bitcoin
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