MSTR - MicroStrategy: I Still Can't Justify Buying
2024-07-11 16:59:09 ET
Summary
- Since my last article in mid-March, MicroStrategy stock has declined along with Bitcoin. The company's premium to BTC decreased from 90% to 78%.
- MicroStrategy raised another $800 million in June through convertible notes, the proceeds of which were used to buy more BTC.
- The recently announced stock split may increase liquidity for MSTR shares as it potentially attracts more retail buyers at the lower price point.
On March 19th, Seeking Alpha published my article covering MicroStrategy ( MSTR ) in which I said the company's stock had traveled "too far, too fast." Despite MSTR shares being my top pick for 2024 just four months prior, I had sold my position based on the assumption that Bitcoin ( BTC-USD ) would decline and bring MSTR shares down with it. Though certainly not in a straight line, those assumptions have since panned out and both BTC and MSTR are now down against a broader Nasdaq that has added 15% since mid-March: