MicroStrategy Not Planning to Sell 10 Billion Shares for Bitcoin

MicroStrategy (MSTR), a prominent business intelligence company, has sparked recent conversations surrounding speculation that it intends to issue 10 billion shares to acquire Bitcoin worth $3 trillion. These rumors have caught the attention of analysts and investors alike, stirring up discussions about the company's financial strategies in light of its significant stakes in cryptocurrency.

Analyst Addresses MicroStrategy Rumors

Jeff Park, who leads Alpha Strategies at Bitwise Asset Management, has responded to these claims dismissively. In a post on social media, he indicated disbelief regarding the speculation, highlighting the sheer magnitude of such an action and questioning its feasibility.

According to Park, the proposed $3 trillion investment is not only unrealistic but also greater than the total market capitalization of Bitcoin, which is currently valued at less than $2 trillion. With MicroStrategy's market capitalization hovering around $85 billion, such a massive investment would be implausible.

Understanding Bitcoin's Impact on MSTR

Park also delves into the concerns some investors may have regarding holding MSTR shares, especially during times of Bitcoin price volatility. He referenced previous discussions that point out the relationship between MSTR’s share price and fluctuations in the cryptocurrency market.

MicroStrategy's substantial Bitcoin holdings tie the company's share value closely to the price movements of BTC. Park commented that even in the event Bitcoin's price falls drastically, as low as $30,000, it is unlikely that MSTR would collapse to zero.

He pointed out that MicroStrategy has various strategies in place that provide it with financial resilience, echoing sentiments expressed by Adam Back, the CEO of Blockstream, who believes MSTR shares are currently undervalued.

Moreover, Park advised investors against adopting a pessimistic view towards MSTR whenever Bitcoin's price decreases. As of the current situation, Bitcoin has shown a surprising recovery, rising by 3.95% to a price of $97,548.

MicroStrategy, Bitcoin, Investment