MicroStrategy Not Selling 10 Billion Shares to Buy Bitcoin

MicroStrategy, a well-known business intelligence firm, is currently the center of rumors regarding a massive stock issuance. Speculation has arisen that the company, led by Michael Saylor, plans to sell 10 billion shares of MSTR in order to acquire an incredible $3 trillion worth of Bitcoin (BTC).

Analyst Refutes the Claims

Jeff Park, who is the Head of Alpha Strategies at Bitwise Asset Management, has publicly addressed these rumors on social media. He has expressed skepticism towards these claims, arguing that such a move is unrealistic. According to Park, the proposed figure of 10 billion shares sounds ridiculous for any company, especially since the total market capitalization of Bitcoin is currently less than $2 trillion. This makes the idea of MicroStrategy attempting to invest $3 trillion in Bitcoin nearly impossible given that the firm's total valuation is around $85 billion.

Park also pointed out deeper concerns facing potential investors. He mentioned that some are hesitant to invest in MicroStrategy due to the volatility associated with Bitcoin prices. In fact, he highlighted a previous discussion where he addressed the issues surrounding MSTR's share performance in relation to fluctuations in the crypto market.

Connection Between MicroStrategy and Bitcoin Valuation

Furthermore, Park explained the close relationship between MicroStrategy's stock value and Bitcoin's market price. He noted that if MicroStrategy were to experience a total collapse in its share value, it would adversely impact Bitcoin as well. However, he reassured investors that even if Bitcoin's price were to fall dramatically to around $30,000, it does not mean that MicroStrategy's shares would go to zero.

Park emphasized that MicroStrategy has various strategies in place to strengthen its position in the market. This aligns with observations made by Adam Back, the CEO of Blockstream, who believes that MicroStrategy's shares are undervalued and offers a significant investment opportunity.

In conclusion, Park advised investors to avoid becoming overly pessimistic about MicroStrategy every time Bitcoin experiences a price drop. As of now, Bitcoin has seen an increase of nearly 4%, trading at $97,548, indicating a market recovery.

MicroStrategy, Bitcoin, Stocks