With Bitcoin (CRYPTO: BTC) prices peaking to all-time high levels, MicroStrategy's (NASDAQ:MSTR) aggressive Bitcoin accumulation strategy has once again become a focal point in discussions among traders and analysts.
What Happened: In a tweet on Monday, industry expert Alex Kolicich addressed common misconceptions about MSTR in a recent tweet, explaining that the stock is neither a leveraged nor a synthetic call option on Bitcoin.
Instead, Kolicich pointed out several structural inefficiencies:
MSTR trades at a 140% premium to its Bitcoin holdings' net asset value (NAV).
Each $1 invested in MSTR stock provides only $0.45 of Bitcoin exposure, far less than direct Bitcoin ownership.
Kolicich further elaborated that MicroStrategy is not leveraged but instead deleveraged, offering reduced Bitcoin exposure compared to direct investments.
He highlighted alternatives like BITX, which provide 2x leverage without a NAV premium.
Additionally, while traditional call options on assets typically offer leveraged upside due to their long volatility exposure, MSTR's convertible bonds effectively short volatility, diluting shareholder returns as Bitcoin prices rise.
Also Read: MicroStrategy Expands Bitcoin Holdings By 15,350 BTC Worth $1.5 Billion After Joining Nasdaq 100
Why It Matters: Crypto trader TheFlowHorse on Dec. 17 in a post on X emphasized the implications of Saylor's aggressive Bitcoin purchases, noting that these acquisitions have significantly raised MicroStrategy's DCA to $61,000.
This figure is approximately 40% higher than Bitcoin's current price, introducing potential risks if prices fail to recover significantly.
Take a look at Saylor's recent Bitcoin buys. The buys up here are so large that he has increased his dollar cost average price by nearly 50%, to 61k. That level is around 40% away. We haven't had a pullback of that magnitude for years, but at some point you have to wonder if in... pic.twitter.com/erhdvrErn2
— HORSE (@TheFlowHorse) December 16, 2024
Analysts warn that while Bitcoin's pullbacks have historically been rare, Saylor's strategy could leave MSTR exposed to potential downside risk, especially with its C-Corp structure subject to double taxation, unlike more efficient ETFs.
Trump Serious About Bitcoin Reserve, Says MicroStrategy's Michael Saylor: 'Buy It Now And Own The Future'
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
Kolicich further elaborated that MicroStrategy is not leveraged but instead deleveraged, offering reduced Bitcoin exposure compared to direct investments. 
コリチッチはさらに、マイクロストラテジーはレバレッジをかけていないが、むしろデレバレッジ化されており、直接投資に比べてビットコインへのエクスポージャーが減少していると説明しました。 