$MicroStrategy(MSTR)$ As almos

$MicroStrategy(MSTR)$ As almost anyone can borrow money to buy bitcoin, there is no massive advantage to having MSTR do it and no justification for the high premium. There is some value from MSTR's ability to monetize BTC's volatility to get cheap convertible financing. However, this is not enough to justify selling for twice the fundamental value.

Just because the firm has been able to borrow money to buy more bitcoin does not mean it can do so forever.

MSTR is basically a closed-end fund selling at a huge premium - roughly twice the value of its assets. As we learned from GBTC, a huge premium can turn into a big discount rather quickly.

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