Strategy closed at $114.41 last night, down 6.5%—its lowest closing price since August 20. That’s nearly 20% off its November 4 price of $142.54.
The trigger was MSCI’s confirmation after the U.S. market closed Wednesday that it would remove the company from indexes including the MSCI USA after the market closes on November 30, effective December 1. Funds tracking these indexes hold about 13 million shares, worth roughly $1.59 billion at Wednesday’s closing price, which they’ll have to sell.
Over the same period, Bitcoin fell from $74,395 to $71,687, a 3.6% drop. MSTR’s decline was about 1.8 times as steep.
COIN fell 4.1%, HOOD fell 3.8%—crypto stocks were all in the red, while the Nasdaq was down just 0.4%.
I’m not too worried about those 13 million shares; nearly 20 million shares changed hands yesterday alone. What concerns me is its buy-Bitcoin strategy. It holds 850,364 BTC (about $60.8 billion), and keeps issuing stock to raise cash to buy more. Now its share price is trading at only about a 1.08x premium to the value of its Bitcoin holdings. If the stock falls further, issuing shares to buy Bitcoin becomes increasingly uneconomical. In the week of November 2–8, it used $188 million in stock-sale proceeds to repurchase preferred shares, and spent only $82 million on Bitcoin.
Figures are from CoinDesk and Strategy’s November 9 announcement. There are 11 trading days left until the market closes on November 30.
$MSTRB $BTC
#美股 #Strategy
The trigger was MSCI’s confirmation after the U.S. market closed Wednesday that it would remove the company from indexes including the MSCI USA after the market closes on November 30, effective December 1. Funds tracking these indexes hold about 13 million shares, worth roughly $1.59 billion at Wednesday’s closing price, which they’ll have to sell.
Over the same period, Bitcoin fell from $74,395 to $71,687, a 3.6% drop. MSTR’s decline was about 1.8 times as steep.
COIN fell 4.1%, HOOD fell 3.8%—crypto stocks were all in the red, while the Nasdaq was down just 0.4%.
I’m not too worried about those 13 million shares; nearly 20 million shares changed hands yesterday alone. What concerns me is its buy-Bitcoin strategy. It holds 850,364 BTC (about $60.8 billion), and keeps issuing stock to raise cash to buy more. Now its share price is trading at only about a 1.08x premium to the value of its Bitcoin holdings. If the stock falls further, issuing shares to buy Bitcoin becomes increasingly uneconomical. In the week of November 2–8, it used $188 million in stock-sale proceeds to repurchase preferred shares, and spent only $82 million on Bitcoin.
Figures are from CoinDesk and Strategy’s November 9 announcement. There are 11 trading days left until the market closes on November 30.
$MSTRB $BTC
#美股 #Strategy