MicroStategy's Bitcoin holdings as a percentage of market cap
It is important to note that the chart is only valid for past late 2020 going into 2021. when MicroStrategy started to buy Bitcoin .
MicroStrategy own slightly more than 70,470 Bitcoin . For the sake of argument, let's say it's 70,470, which is what it was in December of 2020.
MSTR's market cap is 7.47B, and so there are approximately 9,270,990 shares, which is the result of the market cap divided by the price of the stock.
Therefore the current approximate Bitcoin holdings as a fraction of market cap is 70,470*BTCUSD/(9.267*10^6 * MSTR share price).
As of this posting, it is about 0.37
The Bitcoin holdings appear to be going down in recent weeks as a fraction of the total market cap, which is surprising, considering Bitcoin is soaring.
Obviously there is a lot of buy side pressure as a result of Bitcoin soaring, but this might not reflect the underlying market value.
Despite this, I am still on MSTR , since it appears to be a way for institutions to implicitly invest in Bitcoin without holding it directly.
The underlying maths may suggest that MSTR is overpriced, but we need to consider other factors like this.
For instance, my broker doesn't have Greyscale GBTC, so everyone was pouring into MSTR.
Now that TSLA is on board it shouldn't change too much with regard to MSTR since TSLA's holdings of BTC relative to valuation is a lot lower than MSTR.
MSTR is a pretty risky play at the moment in the short term, long time I'm bullish on it.