Today – MicroStrategy (MSTR), the business intelligence firm, is in the news again. Meanwhile, there is speculation that the firm led by Michael Saylor is planning to issue 10 billion MSTR shares to buy 3 billion dollars (BTC).
Analyst debunks MicroStrategy rumors
Jeff Park, Head of Alpha Strategies in Bitwise Asset Management, gave reasons to not believe the forecast in the post on X tone. Park suggests disbelief, given the illusory nature of such a movement, and dismisses it.
Usually, the number is surprisingly large. To Park, it sounds like a no-brainer for the company to invest $3 billion in assets. Interestingly, the current market capitalization of Bitcoin in market value is less than 2 billion dollars. So, pulling off such a move would be impossible, as MicroStrategy is worth about $85 billion.
Beyond the surface, Park also addressed the critical issues among investors who may be behind MSTR due to the volatility of BTC prices. He referred to an earlier post that explained the fear surrounding MSTR and its price performance in relation to the crypto market.
Bitcoin Forecast and MSTR
Notably, Park explained that MicroStrategy's heavy investment in Bitcoin makes the company's share price tied to BTC. He noted that if MSTR were to dip to zero, the price of Bitcoin would be negatively affected.
However, he assured readers that even if Bitcoin declines to a record low of $30,000, MSTR will not crash to zero.
Park stressed that MicroStrategy has plans to raise more capital and additional resources to succeed in the broader market. This is consistent with the report of U.Today, in which Adam Back, Blockstream CEO, maintains that the shares of MicroStrategy are small, believing that they are not important.
Moreover, Park maintains that investors should avoid being bearish with MSTR whenever the price of Bitcoin falls. As of this writing, the BTC price was up 3.95% at $97,548 in an amazing market rebound.