I Did Some Maths. A MicroStrategy Exercise 🧮🦁

in LeoFinancelast year


MicroStrategy is going all in! They are buying up Bitcoin like crazy! It’s a genius move in my opinion, and surely more public companies will soon follow.

As of December 21, 2020, the Company holds an aggregate of approximately 70,470 bitcoins, which were acquired at an aggregate purchase price of approximately $1.125 billion and an average purchase price of approximately $15,964 per bitcoin, inclusive of fees and expenses.

I don’t even really know what their core business is, only that it is becoming a pseudo-Bitcoin-ETF! The stock price is even developing a strong, positive correlation with the King of Crypto!

Anyways,let’s do some math 🧮

Hmm 🤔 So, let’s figure out how many shares make a “MicroStrategy Bitcoin!”

According to Yahoo! Finance there are about 7.25 million shares outstanding, and we know that MicroStrategy owns 70,470. So, some simple division (70,470/7.25mil,) tells us that one share of MSTR, indirectly yields the investor, 0.00972 Bitcoin.

Next, divide that number by 1. We get 102.88! So, that means, an investor must own around 103 shares to indirectly own BTC.

Currently, the stock price is at $370, so that means it would cost you about
$38,110 to indirectly own 1 Bitcoin. This is with totally ignoring, their core business and revenues. Wall Street has it (wrongly) overvalued and overextended, but just think of the possibilities...

Yeah...OK! Throw out any realistic number. Let’s say, Bitcoin @ 100k. I say that’s pretty probable, don’t you?

Assuming their BTC position remains the same, and a cost basis of $15,964 per coin, they would have grown their coffers by at least 626%! Imagine the stock price then!


This was just a silly excercise to fulfill my curiosity. I’m not too good at math, so take it with a grain of salt 🤪 All numbers are estimates & I considered nothing of their core business!


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