According to CryptoQuant analyst Carmelo Alem\u00e1n, the market is mispricing Strategy (MSTR), arguing that the firm\u2019s 649,870 BTC stash now implies a value that\u2019s about 78% above where the stock currently trades.<\/p>\n
He bases that view on on-chain metrics and CryptoQuant\u2019s MSTR \u201cprice bands,\u201d which he says now show the stock sitting deep in its historical undervaluation zone.<\/p>\n
In a December 1 report, Alem\u00e1n pointed out that Strategy\u2019s Bitcoin holdings were acquired at an average cost of $74,432 per BTC, giving the company a corporate \u201crealized price\u201d with about 22% unrealized profit on its position.<\/p>\n
By his calculations, the relationship between this stash and the current MSTR share price suggests<\/a> a discount of around 78% relative to the value implied by its BTC treasury.<\/p>\n CryptoQuant\u2019s MSTR price bands compare the stock\u2019s actual trading level with a theoretical fair value based purely on its Bitcoin reserves. The upper band has historically marked periods when MSTR trades at a rich premium, while the lower band has tended to coincide with heavy discounts that are often followed by recoveries.<\/p>\n Alem\u00e1n noted that in the latest chart, MSTR has already tapped that lower band, a condition he described as a strong mispricing signal that, in past cycles, preceded \u201csustained recoveries\u201d once sentiment improved.<\/p>\n Meanwhile, Strategy\u2019s BTC accumulation has not slowed. It recently executed its largest purchase since July, adding<\/a> more than $830 million worth of Bitcoin at around $100,000 per BTC.<\/p>\n That move followed rumors that the firm was quietly selling, which were later debunked by on-chain analysts and CEO Michael Saylor, who insisted the company had been buying daily even as BTC slid from about $107,000 to $94,000.<\/p>\n MSTR closed around $177 on December 1, far below its 52-week high near $457 and barely above its yearly low near $166, according to Yahoo Finance data.\u00a0The stock has been hit by a broad pullback in Bitcoin-linked equities, its exclusion from the S&P 500 on November 25, and fears that upcoming MSCI index rules could force<\/a> additional selling of companies whose balance sheets are heavily tied to crypto.<\/p>\n At the same time, institutional money has been shifting from leveraged \u201cBitcoin proxy\u201d stocks like Strategy into spot BTC ETFs from issuers such as BlackRock.\u00a0According to market watchers, that rotation has eroded the hefty premium MSTR often enjoyed over its underlying Bitcoin and, for the first time in about five years, pushed the company\u2019s market value below the worth of its BTC holdings.<\/p>\n Some, like Bitwise CIO Matt Hougan, argue that companies holding large digital asset treasuries can reasonably trade at a discount due to operating costs and risk.\u00a0Strategy itself has tried to reassure bondholders, recently stressing that its BTC reserves cover<\/a> its convertible debt nearly sixfold at Bitcoin around $74,000 and roughly twice over even in a steep drop to $25,000.<\/p>\n The post CryptoQuant: Strategy\u2019s Bitcoin Is Worth 78% More Than Its Stock<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" According to CryptoQuant analyst Carmelo Alem\u00e1n, the market is mispricing Strategy (MSTR), arguing that the firm\u2019s 649,870 BTC stash now implies a value that\u2019s about 78% above where the stock currently trades. He bases that view on on-chain metrics and CryptoQuant\u2019s MSTR \u201cprice bands,\u201d which he says now show the stock sitting deep in its […]<\/p>\n","protected":false},"author":0,"featured_media":117064,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-117063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/117063"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=117063"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/117063\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/117064"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=117063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=117063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=117063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Stock Slide and ETF Rotation<\/h2>\n