Steno Research: MicroStrategy's Bitcoin holdings at a nearly 300% premium are unsustainable

Odaily Planet Daily Report Steno Research stated in a report on Friday that the premium of MicroStrategy (MSTR) relative to its holdings is unlikely to persist. "This belief is further supported by the weakening effect of MicroStrategy's recent stock split, " analyst Mads Eberhardt wrote, adding that the upcoming launch of a spot exchange-traded fund (ETF) in the US will also reduce the incentive for investors to hold the stock rather than these ETFs. The software company founded by Michael Saylor underwent a 10-to-1 stock split in August, which Steno believes has contributed to the recent rally. Steno pointed out that MicroStrategy's premium relative to its reserves has recently soared to nearly 300%. The report said this indicates the company's valuation is "significantly deviating from a simple calculation of its assets and business fundamentals." As regulators become more friendly towards and the overall cryptocurrency, investors may choose to hold directly rather than MicroStrategy's stock. Steno said this regulatory trend is expected to continue if Donald Trump is re-elected. is expected to perform strongly this quarter and in 2025, which means "higher buying demand is needed to sustain MicroStrategy's current premium." The report added that MicroStrategy's current premium is unsustainable, especially considering that during the 2021 cryptocurrency bull market, its premium was below 200% most of the time. (CoinDesk)