MicroStrategy Bitcoin FOMO

前天

Is it time to sell? In percentage terms, MicroStrategy has significantly outperformed its underlying asset, Bitcoin. It's concerning to watch Michael Saylor's FOMO (fear of missing out) into Bitcoin over the past year, as this could ultimately do more harm than good for Bitcoin. MicroStrategy's stock seems massively overvalued compared to its Bitcoin holdings. As the saying goes, "when the tide goes out, we see who is swimming naked."

Over the same period Bitcoin has gained 674%, while MicroStrategy has gained 2831%, making the situation quite clear. When comparing past bull runs, the percentage gains between Bitcoin and MicroStrategy have typically matched more closely, with both assets trending up together. So, what's different this time? Media exposure and FOMO.

Proceed with caution; this is starting to look like a bubble. Is it time to short?

前天

註釋

Added comment: If you have access to a Bitcoin ETF, I don’t see why you would choose to buy MSTR. The only reason you might buy a Bitcoin ETF instead of Bitcoin is to invest through products like pensions, ISAs, or 401(k)s, which do not allow you to buy and own Bitcoin directly.

In countries that don’t offer a Bitcoin ETF, or for retail investors in the UK who cannot purchase Bitcoin due to FCA regulations, MSTR becomes a viable option. However, this is the only reason for buying it, which makes it a bubble. Once global Bitcoin ETFs/ETCs become available to all, MSTR's strategy will likely start to unravel athe share price will track at the price of BTC or maybe even lower because of the added risk. There is simply no reason to buy MSTR and pay a premium to own Bitcoin.