Michael Saylor’s MSTR Nav Premium to Bitcoin (BTC) Holdings Shouldn’t Be Feared
Benchmark Capital, a leading investment firm, has expressed confidence in MicroStrategy’s business model, stating that it justifies the premium to Net Asset Value (NAV) that the company currently commands. According to Benchmark, traders should pay close attention to MicroStrategy’s Bitcoin Yield, a metric introduced by CEO Michael Saylor and his team earlier this year.
Bitcoin Yield is a measure of the effectiveness of bitcoin investments, calculated by tracking the percentage change over time of the ratio between MicroStrategy’s bitcoin holdings and its fully diluted share count. As of September 19, 2021, MicroStrategy’s Bitcoin Yield stood at 17.8%. This is a significant increase compared to 1.8% in 2022 and 7.3% in 2023, according to data provided by Benchmark.
By focusing on Bitcoin Yield, traders can gain valuable insights into the performance of MicroStrategy’s bitcoin investments and overall business model. Benchmark’s analysis suggests that MicroStrategy’s strategic approach to incorporating bitcoin into its treasury reserves has been successful, resulting in a strong Bitcoin Yield that justifies the premium to NAV.
