Michael Saylor Explains 4 Reasons MSTR Trades at a Premium to Bitcoin NAV

Key Points

1. MicroStrategy's stock (MSTR) trades above its Bitcoin NAV due to factors like credit amplification, options advantage, passive flows, and institutional access.

2. Credit amplification allows MicroStrategy to leverage Bitcoin through equity-based financing, unlike Bitcoin ETPs or direct holdings.

3. MicroStrategy benefits from passive investment flows not available to Bitcoin or its spot-based ETPs, as it is included in major indices like the S&P 500 and Russell 1000.

4. Institutional reach is a key advantage, with equity markets providing access to $35 trillion in equity and $60 trillion in credit, far exceeding the $700 billion crypto market.

5. MicroStrategy funds its Bitcoin purchases through debt and equity offerings, holding approximately 628,946 BTC as of its latest public filing.