Summary
- MicroStrategy holds the most Bitcoin and is expected to see its stock price plummet if BTC falls.
- Tatiana Koffman expressed the view that MSTR's debt issues could lead to a stock price decline.
- Clifford Asness pointed out that MSTR is benefiting existing shareholders through new stock issuance.
According to DL News, a cryptocurrency-focused media outlet, on the 17th (local time), the stock price of MicroStrategy (Nasdaq ticker: MSTR), which holds the most Bitcoin (BTC) among single companies, is soaring. However, some are raising questions about the sustainability of MSTR's strategy.
Tatiana Koffman, author of 'Myth of Money,' stated, "Ultimately, MSTR's debt will surpass the value of its stock, and the trading premium will disappear," adding, "Especially if BTC falls, the burden of repaying senior bonds will cause MSTR's stock price to plummet."
She further predicted, "However, this is unlikely to happen in the next 6 to 12 months."
Clifford Asness, Chief Investment Officer (CIO) of the major U.S. hedge fund AQR Capital, criticized, "MSTR is exploiting new stock buyers to enrich existing shareholders," noting that "the continued rise in MSTR's premium has allowed for the issuance of more shares for new investors to purchase."
Meanwhile, BTC is trading at $107,469.71, up 0.38% from the previous day, on the Binance Tether (USDT) market as of 02:26 on the 18th.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
