Bitcoin Climbs 13% While Strategy Shares Drop 3%
Bitcoin (BTC) has increased by approximately 13% this month, nearing $110,000, while shares of Strategy (MSTR) have declined by 3%, trading around $372. Key points include:
- The divergence between BTC and MSTR has intensified since mid-May.
- Over 113 public companies now hold bitcoin, with 11 new additions in the last 30 days.
- Strategy's market premium is decreasing, indicating a diminishing early-mover advantage.
- The multiple to net asset value (mNAV) for MSTR has dropped to 1.80, one of its lowest levels in a year.
- A lower mNAV restricts Strategy’s capacity to issue new equity without diluting existing shareholders.
- Recently, Strategy purchased 4,020 BTC for $427 million; the funding included 81.7% common stock and alternative instruments.
- This funding strategy may be aimed at reducing shareholder dilution amidst a compressed mNAV environment.