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Author: Admin | 2025-04-28
Assets minus its liabilities, providing a tangible measure of its worth. According to Strategy’s Q4 2024 report, the company had $1,934,312,000 in assets, excluding its Bitcoin holdings.With Bitcoin priced at $100,000, Strategy’s Bitcoin holdings amount to $47.87 billion.To calculate the book value, one must add the assets value to the Bitcoin holdings and then subtract the company’s debt, which stands at $6.52 billion as of February 2025. Preferred shares also count as a liability, at least for now, as they represent a claim on the company’s assets. With 7.3 million preferred shares priced at $100 per share, they add an additional $730 million liability to the balance sheet.This results in a total book value of $42.56 billion. With the current number of outstanding shares, both Class A and Class B, this translates to a book value per share of $164.86.Combined Fair Value CalculationTo determine the fair value, we combine the book value per share and the intrinsic value of the company:Fair value per share = $164.86 + $8.5 = $173.36By applying the 80% premium discussed earlier, the adjusted fair value increases to:Fair value with an 80% premium = $173.36 × 1.8 = $312.05Given Bitcoin at $100,000 and MicroStrategy’s reserves, a stock price of $312.05 reflects fair value. Should the stock price fall below this mark, it would be considered an undervalued asset, presenting a potential investment opportunity.Is MicroStrategy a Better Investment Than Bitcoin?To assess whether MicroStrategy is a better investment than Bitcoin, it is essential to project Bitcoin’s potential price by 2032 across various scenarios.What Will 1 Bitcoin Be Worth in 2032?Rainbow ChartThe first approach to forecasting Bitcoin’s price by 2032, the year of the sixth halving, is the Rainbow Chart. This chart utilizes logarithmic regression to mitigate the extreme price fluctuations that Bitcoin has experienced, making the long-term trends
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