Technique (previously MicroStrategy) founder Michael Saylor has broadcasted many doubtful claims over time, however this week’s likening of MSTR to “digital treasuries” would possibly take the cake.
At first look, Saylor’s tweet would possibly mislead some into believing that he referred to MSTR as a sort of treasury bond — as in a US Treasury.
Nevertheless, a cautious evaluation of the prolonged presentation hooked up to the tweet reveals that he merely meant to name Technique — the enterprise — a digital asset treasury (DAT).
Nonetheless, the declare that MSTR is an organization within the digital treasuries sector continues to be unbelievable simply on the premise of dictionary definitions.
Somewhat than an precise treasury that holds belongings for a saver, Technique holds bitcoin (BTC) that it repeatedly tells shareholders that they’ll by no means personal.
In quite a few Safety and Alternate Fee filings, together with its most up-to-date quarterly earnings report, the corporate emphatically tells MSTR shareholders that they don’t personal Technique’s BTC.
“Ownership of our securities, including our class A common stock and preferred stock, does not represent an ownership interest in, or a redemption right with respect to, the bitcoin we hold,” it explains.
This contrasts with the dictionary definition of treasury: a spot by which shops of wealth are stored. No MSTR shareholder shops their BTC in Technique’s treasury, and the BTC in Technique’s treasury doesn’t retailer MSTR shareholders’ wealth.
For months, the corporate has printed variations of that disclaimer to make clear that MSTR isn’t a BTC treasury — by the corporate’s personal admission — besides in identify solely.
MSTR: Not a treasury, not amplifying BTC lately
Throughout the identical presentation, Saylor additionally known as MSTR “amplified BTC.”
That declare is equally unbelievable, albeit additionally obscure sufficient to keep away from the scrutiny of his first declare that MSTR is digital treasuries.
Though it’s true that the enterprise worth of MSTR exceeds the worth of the BTC that it holds by 21%, its multiple-to-Internet Asset Worth (mNAV) of 1.21x has been declining for over a 12 months.
Somewhat than amplifying the returns of BTC, any MSTR holder has misplaced cash versus merely holding BTC since February 2024. Solely over for much longer timeframes has MSTR outperformed BTC.
