The book-value gains at Michael Saylor’s bitcoin-holding company have basically been wiped out.
As of November 1, it held 849,000 $BTC , with an average cost of about $75,400 per coin. Now $BTC is hovering around $75,800, leaving a difference of less than half a percent.
Based on the November 2 disclosure, its holdings were worth $64.5 billion, while its total market capitalization was $54.99 billion. Its market cap was just 0.85 times the value of its bitcoin holdings—a 15% discount.
The person weighing in today was Peter Schiff. The economist, a longtime bitcoin skeptic, posted a “Congratulations” on social media, aimed at these figures.
The mechanics are clear. When the market cap falls below the value of its bitcoin holdings, issuing shares to buy more bitcoin dilutes the amount of bitcoin represented by each share, so the strategy of expanding through a premium will slow on its own. In the week from October 26 to November 1, it bought back 2.09 million shares, spending $208 million.
There’s another date ahead. MSCI will announce index constituent changes on November 11, effective November 30. It has already approved a new rule that could exclude companies like this, whose primary business is holding bitcoin.
As of November 1, it held 849,000 $BTC , with an average cost of about $75,400 per coin. Now $BTC is hovering around $75,800, leaving a difference of less than half a percent.
Based on the November 2 disclosure, its holdings were worth $64.5 billion, while its total market capitalization was $54.99 billion. Its market cap was just 0.85 times the value of its bitcoin holdings—a 15% discount.
The person weighing in today was Peter Schiff. The economist, a longtime bitcoin skeptic, posted a “Congratulations” on social media, aimed at these figures.
The mechanics are clear. When the market cap falls below the value of its bitcoin holdings, issuing shares to buy more bitcoin dilutes the amount of bitcoin represented by each share, so the strategy of expanding through a premium will slow on its own. In the week from October 26 to November 1, it bought back 2.09 million shares, spending $208 million.
There’s another date ahead. MSCI will announce index constituent changes on November 11, effective November 30. It has already approved a new rule that could exclude companies like this, whose primary business is holding bitcoin.
