Regarding cryptocurrency-related stocks.
Entering the second half of this year and adding some to the portfolio, as a result of significantly increasing the position in MSTR after the U.S. presidential election, it has resulted in a valuation gain exceeding $0.12 million currently.
As for future plans, part or all of the profits will be realized, and position adjustments will be made. At this stage, instead of being pessimistic about the future, it is a response to the fact that positions have become significantly higher than the risk tolerance level, depending on the market for profit-taking timing and adjustment amount.
As of the current analysis, in terms of the amount of bitcoin holdings, MSTR holds more than 0.33 million BTC through fund raising with convertible bonds, exceeding 1% of the current total circulation of bitcoin and becoming the top publicly traded company. When converted at $0.09 million per 1 BTC, it amounts to around $30 billion, and it is easy to imagine that the bitcoin price directly reflects the stock price when considering MSTR's market capitalization. A similar situation is observed for MARA, the current second company, which has announced plans to acquire bitcoins using part of the debt issuance funds.
On the other hand, concerning the rise in the value of bitcoin, the relative leverage in MSTR's stock price increase leads to a situation where a simple judgment of future stock prices and their probabilities cannot be made. By taking a slice of the current environment, there seems to be a period where buyers feel a sense of rising infinitely for both parties with a logic that buying bitcoin increases its value, the increase in bitcoin value raises the company's value, then using the increased company value to buy more bitcoins. Historical events like the South Sea Bubble Incident or the Lehman Shock have shown that when the relationship with other assets affects a company's business value, the impact on the company from both the increase and decrease is often greater than the price.
Like stocks and currencies, some assets have continuously increased in total value since their invention, but I cannot accurately predict the relationship between cryptocurrency and existing assets, so I would like to continue adjusting positions flexibly while controlling risk in the future.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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