Warning: The analyst who wrote this piece has strategy shares (MSTR).
Since the beginning of this month, an increasing divergence has appeared between Bitcoin
and Bitcoin-Hodler Strategy (MSTR). While Bitcoin climbed approximately 13%, approaching the $ 110,000 mark, MSTR’s shares slipped 3%, exchanging about $ 372.
This performance gap has become more pronounced since mid-May and raises questions about the feeling of the company towards the company that launched the Bitcoin Treasury strategy for companies. Although he played a leading role in this movement, the Strategy stock did not reflect the last rally of Bitcoin.
A key factor is the rapid increase in the number of public companies adopting similar Bitcoin strategies. According to BitCointareries.net data, more than 113 public companies from around the world now hold bitcoin on their balance sheets, marking an increase of 11 new entrants in the last 30 days.
Many seem to follow the stratum gaming book, but the company market bonus compresses, which indicates that its advantage at the start of trigger can be discolored.
The value of multiple assets in Net (MNAV) of the strategy, which reflects the way in which the market values the company compared to its Bitcoin holders, fell to 1.80 one of its lowest points in the past year.
This figure is calculated by dividing the business value (EV) by the market value of its Bitcoin holdings. The EV includes the current market capitalization of MSTR, convertible debt and privileged shares (such as Strk and Strf), less the last declared cash flow of the company.
A lower MNAV limits the capacity of the strategy to issue new equity without considerably diluting existing shareholders, although it remains above 1x, preserving a certain margin.
The recent purchase of 4,020 BTC of the strategy, its smallest since May 5, also reveals a significant change in the financing structure. The acquisition was financed not only by common joint stock, but also through favorite securities – 81.7% of ordinary shares, 15.9% compared to STRK and 2.4% of STRF, according to MSTR Ben Werkman analyst.
This diversification indicates that the company strategically exploits alternative instruments via its market offer (ATM), possibly to mitigate shareholders’ dilution and optimize capital lifting in a compressed MNAV environment.
Read more: the strategy buys 4,020 bitcoin for $ 427 million, which brought a total hiding place to more than 580,000 BTC
