MicroStrategy's nearly 300% premium relative to its bitcoin holdings is deemed unsustainable by Steno Research. The report highlights that the positive impact of a recent stock split is diminishing, and the upcoming launch of options on spot bitcoin ETFs is expected to reduce investor interest in the company's stock in favor of these ETFs. Historically, during the 2021 crypto bull market, MicroStrategy's premium did not exceed 200%. The volatility in demand for MicroStrategy's shares is attributed to the increasing preference among investors to hold bitcoin directly, especially as regulatory environments become more favorable towards cryptocurrencies. The report indicates that a substantial surge in bitcoin demand would be necessary to sustain MicroStrategy's current premium, especially as bitcoin remains anticipated to perform well in the forthcoming periods. Analysts consider the existing premium is unlikely to hold, particularly with traditional market dynamics shifting toward asset holdings rather than leveraged stock positions.

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