China News Daily Official TheBitTimes.com

The last four times Michael Saylor announced a corporate bitcoin (BTC) purchase at Strategy, his stock price declined. In previous years, the market has generally reacted positively to his tweets. Although the company’s average cost basis per bitcoin is $66,357 — still well below current prices — Strategy (formerly MicroStrategy) has lost money on each of the company’s last 13 purchases. Depending on how one prefers to calculate the price of Strategy stock (MSTR) as of its November 11 announcement that coincided with a major price gap, it’s certainly true that it’s also lower than all 13 of its latest bitcoin purchases. Saylor’s last four BTC acquisition tweets sent MSTR lower over the following days. As bitcoin paused and then retraced the run-up to Donald Trump’s January inauguration, MSTR shareholders have benefited less and less from the company’s increasing BTC cost basis. MSTR trades lower on Saylor’s last four purchases Saylo...

Author: @Web3_Mario Source: https://mp.weixin.qq.com/s/jfJURj_OhymH12OBN8qIcQ Abstract This article primarily discusses the recent high topic surrounding MicroStrategy. Many industry veterans have commented on the company's operational model. After digesting and thoroughly researching the matter, I have some personal insights that I would like to share. I believe the reason for MicroStrategy's stock price increase lies in the "Davis Double-Play." Through its business design of financing to purchase BTC, MicroStrategy has linked the appreciation of BTC with the company's profitability. Additionally, the innovative design of combining traditional financial market financing channels and leveraging funds has enabled the company to achieve a level of profitability growth that surpasses the gains from its BTC holdings. As the position grows, the company gains certain pricing power over BTC, further reinforcing the expectation of profitability growth. However, the risks ...