Bitcoin and MicroStrategy Price Forecasts
"Will Bitcoin price go back to under 20K? Yes. If Bitcoin price goes back to 120,000, what does that mean for the price of MicroStrategy? Well, with a NAV multiple of 1.0, that'd be 291 bucks."
ℹ️ In shortThe author predicts Bitcoin could drop below $20,000, but if it rises to $120,000, MicroStrategy would reach $291.
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… Again, now I will dig into a couple of things here. This is the arb. So, we look at the current price circa 130-ish and we look at the price of Bitcoin, the most important thing to focus on is the NAV multiples. Will the NAV multiples of 2.5, 3 come back again? I don't think so. The world is wise to them this time around. But, will Bitcoin price go back to under 20K? Yes. If Bitcoin price goes back to 120,000, what does that mean for the price of MicroStrategy? Well, with a NAV multiple of 1.0, that'd be 291 bucks. But, I hear you ask, "Hang on. That's a 2x in Bitcoin price, but that's more than a 2x in MicroStrategy price." Well, using my arb model here, MicroStrategy should be trading at $163, but it's not. It's not trading at that because it's trading at about 15% discount to their Bitcoin bag. Now, be careful out there. You'll see a lot of NAV premium ca …
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