K33: The decline in MSTR’s premium over Bitcoin holdings and the competition among companies to hoard coins have slowed down the pace of strategy positions

Mars Finance News, on May 28, recently, although Strategy (formerly MicroStrategy) continues to add Bitcoin positions, the rate of increase has significantly slowed compared to the peak in November last year. K33 Research Director Vetle Lunde pointed out in a Tuesday report that there are two reasons for the slowdown: first, the premium of Strategy's Class A common stock MSTR relative to its Bitcoin holdings has decreased; second, the corporate Bitcoin hoarding competition is becoming increasingly fierce. Between May 19 and 25, Strategy purchased 4,020 bitcoins at an average price of $106,237 (approximately $427.1 million), of which $348.7 million came from financing under its latest $21 billion ATM (at-the-market) plan - a significant reduction from $705.7 million the previous week and $1.31 billion from May 5 to 11. "Overall, the funding usage rate of the new $21 billion ATM plan is far lower than the first $21 billion plan," Lunde stated. "From November 4 to December 16 last year, MSTR averaged $2.13 billion in ATM financing per week, while the recent three-week average is only $788 million. Other companies announcing Bitcoin reserves provide more Bitcoin reserve concept stock options, which may divert some demand from MSTR." Additionally, as Strategy's Bitcoin holdings appreciate, maintaining the previous 2x net asset premium requires stronger buying support. "Last week (especially on Friday), MSTR's premium relative to Bitcoin holdings plummeted from 185% to 163%, a new low since April 8," Lunde added. "Aggressive issuance accelerated premium contraction and may force MSTR to slow down its ATM financing pace - the spectacular situation from November last year, where large-scale issuance could still drive up the premium, is unlikely to reappear."