External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

Microstrategy Inc Cl A / Equity Bottom-Up

<ul><li>Approval of bitcoin ETFs by the SEC causing volatility in MSTR shares and bitcoin prices</li><li>Opportunity for a trade pairing short sale of MSTR shares with purchase of bitcoin ETF</li><li>Fluctuating premium of MSTR's enterprise value over SOTP value, expected to dissipate with approval of bitcoin ETFs</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Approval of bitcoin ETFs by the SEC causing volatility in MSTR shares and bitcoin pricesOpportunity for a trade pairing short sale of MSTR shares with purchase of bitcoin ETFFluctuating premium of MSTR's enterprise value over SOTP value, expected to dissipate with approval of bitcoin ETFsThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Microstrategy Inc (MSTR) - Tuesday, Jan 9, 2024

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>MicroStrategy Inc's fourth quarter 2023 earnings point towards a strong performance from being the world's largest corporate holder of bitcoin, possessing 190,000 bitcoins with a market value of $8.1 billion.</li><li>Over 2023, the company added another 56,650 bitcoins to its portfolio costing $1.9 billion, making the company's bitcoin strategy a long-term focus.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

MicroStrategy Inc's fourth quarter 2023 earnings point towards a strong performance from being the world's largest corporate holder of bitcoin, possessing 190,000 bitcoins with a market value of $8.1 billion.Over 2023, the company added another 56,650 bitcoins to its portfolio costing $1.9 billion, making the company's bitcoin strategy a long-term focus.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

MicroStrategy: Is Its Bitcoin Strategy Changing The Game? - Major Drivers

<ul><li>This is our first report on MicroStrategy, a company at the forefront of enterprise analytics software.</li><li>In the third quarter of 2023, the company revealed notable developments in both its primary software ventures and its strategic Bitcoin investments.</li><li>The overall revenue for this period reached $129.5 million, marking a 3% year-over year increase, with a significant 16% rise in software license revenues, totaling $45 million.</li></ul>

This is our first report on MicroStrategy, a company at the forefront of enterprise analytics software.In the third quarter of 2023, the company revealed notable developments in both its primary software ventures and its strategic Bitcoin investments.The overall revenue for this period reached $129.5 million, marking a 3% year-over year increase, with a significant 16% rise in software license revenues, totaling $45 million.

MicroStrategy: Initiation of Coverage - Revolutionary AI and Cloud Surge! Why MicroStrategy Could Be Your Next Goldmine in Tech Investment! - Major Drivers

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/microstrategy-inc-cl-a" target="_blank" data-smartkarma-citation="entities:14717:1" rel="noopener">MicroStrategy Inc (MSTR US)</a> is trading at a ~2% discount to NAV as the crypto rout moves into a higher gear.  </li>
<li>Bitcoin briefly dipped below US$25k in the last 24 hours, an 18-month low. If it falls another 18%, this will trigger a margin call on one of MicroStrategy's loans.</li>
<li>All is not well elsewhere in cryptoland. Ethereum touched a 17-month low; the Luna/Terra ecosystem has crashed; and crypto lender Celsus capitulated ~60% this morning after freezing withdrawals. </li>
</ul>



MicroStrategy Inc (MSTR US) is trading at a ~2% discount to NAV as the crypto rout moves into a higher gear.  
Bitcoin briefly dipped below US$25k in the last 24 hours, an 18-month low. If it falls another 18%, this will trigger a margin call on one of MicroStrategy's loans.
All is not well elsewhere in cryptoland. Ethereum touched a 17-month low; the Luna/Terra ecosystem has crashed; and crypto lender Celsus capitulated ~60% this morning after freezing withdrawals. 


MicroStrategy (MSTR US): It's Cratering Time

Full disclosure - I'm somewhat of a cryptocurrency sceptic. I think Bitcoin is not an "investment" but a "speculation." SEC officials have stated their view that bitcoin is not a “security” for purposes of the US federal securities laws. It has zero correlation with the real economy and zero fundamentals - and can potentially go to zero.  It is, in my view, digital Monopoly money.
I stop short of calling Bitcoin a Ponzi scheme. There are no centralised actors here primed to bail (or at least no publicly-self-identifying centralised actors)
BUT - and there's always a but - Bitcoin is a recognised commodity. And it is possible to obtain crypto Visa cards and store crypto in a PayPal account, which lends a certain confirmation bias with the support of these traditional financing systems. Or perhaps the transaction fees revolving around cryptos are simply too big to ignore. 
And there is an increasing number of jurisdictions world-wide granting money transmitter licenses to cryptocurrency exchanges - although news overnight of the UK watchdog banning crypto exchange Binance serves to illustrate the issues surrounding these regulated activities.  
This all brings us to <a href="https://www.smartkarma.com/entities/microstrategy-inc-cl-a" target="_blank" data-smartkarma-citation="entities:14717:1" rel="noopener">Microstrategy Inc Cl A (MSTR US)</a>. 
As of the<a href="https://www.microstrategy.com/en/investor-relations/press/microstrategy-acquires-additional-bitcoins-and-now-holds-over-105000-bitcoins-in-total_06-21-2021" target="_blank" rel="noopener"> 21 June</a> MicroStrategy holds  "approximately" 105,085 bitcoins, which were acquired at an aggregate purchase price of $2.741bn and an average purchase price of $26,080/ bitcoin.
Microstrategy is, in effect, a holding company for bitcoin. Stub ops are largely immaterial.
That stash of "coins" is currently worth US$3.6bn versus Microstrategy's current market cap of US$5.4bn. This is before factoring in the three hard-currency fund-raising exercises in the past six months. Mmm.
More below the fold.

Full disclosure - I'm somewhat of a cryptocurrency sceptic. I think Bitcoin is not an "investment" but a "speculation." SEC officials have stated their view that bitcoin is not a “security” for purposes of the US federal securities laws. It has zero correlation with the real economy and zero fundamentals - and can potentially go to zero.  It is, in my view, digital Monopoly money.
I stop short of calling Bitcoin a Ponzi scheme. There are no centralised actors here primed to bail (or at least no publicly-self-identifying centralised actors)
BUT - and there's always a but - Bitcoin is a recognised commodity. And it is possible to obtain crypto Visa cards and store crypto in a PayPal account, which lends a certain confirmation bias with the support of these traditional financing systems. Or perhaps the transaction fees revolving around cryptos are simply too big to ignore. 
And there is an increasing number of jurisdictions world-wide granting money transmitter licenses to cryptocurrency exchanges - although news overnight of the UK watchdog banning crypto exchange Binance serves to illustrate the issues surrounding these regulated activities.  
This all brings us to Microstrategy Inc Cl A (MSTR US). 
As of the 21 June MicroStrategy holds  "approximately" 105,085 bitcoins, which were acquired at an aggregate purchase price of $2.741bn and an average purchase price of $26,080/ bitcoin.
Microstrategy is, in effect, a holding company for bitcoin. Stub ops are largely immaterial.
That stash of "coins" is currently worth US$3.6bn versus Microstrategy's current market cap of US$5.4bn. This is before factoring in the three hard-currency fund-raising exercises in the past six months. Mmm.
More below the fold.

Microstrategy (MSTR US): "Crypto Through The Tulips"

United States

MicroStrategy Incorporated provides business intelligence software and related services.  The Company's technology platform enables departments and enterprises to deploy Web-based reporting and analysis solutions.  MicroStrategy also offers consulting, training, and support services.  Solutions are provided to retail, finance, telecommunications, insurance, dot-com, and healthcare industries.

Microstrategy Inc Cl A (MSTR US)

Microstrategy Inc (MSTR) - Tuesday, Jan 9, 2024

Approval of bitcoin ETFs by the SEC causing volatility in MSTR shares and bitcoin prices. Opportunity for a trade pairing short sale of MSTR shares...

Value Investors Club

MicroStrategy: Is Its Bitcoin Strategy Changing The Game? - Major Drivers

MicroStrategy Inc's fourth quarter 2023 earnings point towards a strong performance from being the world's largest corporate holder of bitcoin,...

Baptista Research

MicroStrategy: Initiation of Coverage - Revolutionary AI and Cloud Surge! Why MicroStrategy Could Be Your Next Goldmine in Tech Investment! - Major Drivers

This is our first report on MicroStrategy, a company at the forefront of enterprise analytics software. In the third quarter of 2023, the company...

Baptista Research

MicroStrategy (MSTR US): It's Cratering Time

In my last note, I recommended covering. That was an apt call. I would be putting on the short again here. The NAV discount could easily widen out...

David Blennerhassett

Microstrategy (MSTR US): "Crypto Through The Tulips"

At the current levels, I'd short Mictostratgy and go long BTC. Alternative conclusion to what one investor deemed Microstrategy to be a bitcoin...

David Blennerhassett