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Author: Admin | 2025-04-28
More than Bitcoin resulting in it trading under its Bitcoin holdings value (kind of like GBTC). That's currently the case; their market cap is only $3.8 billion. However, it's, of course, not that simple. MicroStrategy has a large amount of debt which means not all their holdings are technically theirs, only those left after they pay their debt. On top of that, their debt is also a potential risk. If the price of Bitcoin was to fall a lot, it could cause them to have to file for bankruptcy.Here are the benefits of holding Microstrategy compared to other Bitcoin related products according to their investor day presentation. Image via Microstrategy Investor day presentation The positive with MicroStrategy compared to holding Bitcoin itself is similar to what the miners have. Miners produce more Bitcoin when mining. On the other hand, MicroStrategy has an underlying business that produces cash flow. That cash flow can then be used to purchase more BTC. That means that if Bitcoin rises, you'll be exposed to the upside move as well as the additional BTC being produced. However, there is the risk that MicroStrategy is left at a discount since other companies like miners give you the same potential upside.Crypto Exchange: CoinbaseTo quote what Goldman Sachs said about Coinbase, it's "the blue-chip way" to gain crypto exposure, and that seems about right for a plethora of reasons. First, unlike the previous two companies, Coinbase has indirect exposure to many cryptocurrencies. Second, Coinbase is the second-largest exchange based
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