No, MicroStrategy Is Not Selling 10 Billion Shares to Buy Bitcoin

MicroStrategy (MSTR), a well-known business intelligence firm, has recently been the subject of some intriguing speculation. There have been rumors suggesting that the company, led by Michael Saylor, is planning to issue 10 billion shares to acquire Bitcoin (BTC) worth around $3 trillion.

Analyst Debunks the Rumors

Jeff Park, the Head of Alpha Strategies at Bitwise Asset Management, took to social media platform X to address the outrageous rumors. In his post, Park expressed skepticism regarding the feasibility of such a course of action, calling it unrealistic. His thoughts suggest disbelief about the speculation’s viability and he ultimately dismisses the notion entirely.

The proposed figure of $3 trillion is enormous and, according to Park, it seems implausible for any company to invest that much in a single asset. To put this into perspective, the total market capitalization of Bitcoin is currently below $2 trillion. Hence, making such an investment would be nearly impossible, especially considering MicroStrategy itself is valued at about $85 billion.

Park also touched on concerns among potential investors regarding MicroStrategy’s susceptibility to Bitcoin's price fluctuations. He referenced earlier discussions that explained how the performance of MicroStrategy's shares is closely linked to Bitcoin's value.

The Relationship Between Bitcoin and MicroStrategy's Value

It is important to emphasize that MicroStrategy has significant investments in Bitcoin, which means the value of its shares is inherently connected to the performance of BTC. Park pointed out that if MicroStrategy were to collapse to zero, it would negatively impact Bitcoin's market value as well.

Despite this connection, Park reassured investors that even in the worst-case scenario where Bitcoin drops to $30,000, MicroStrategy's shares would not necessarily plummet to zero. This is largely because the company has various strategies for capital extension and several options to remain competitive in the wider market. His view aligns with a report indicating that MicroStrategy’s shares are currently undervalued.

Moreover, Park advised investors against being overly pessimistic about MicroStrategy during Bitcoin's price dips. As of the latest updates, the price of Bitcoin was experiencing a significant uplift, trading at $97,548, showing a remarkable 3.95% increase.

MicroStrategy, Bitcoin, Speculation