I have been holding MicroStrategy shares ($MSTR (+3,77%) ) for half a year now. Originally, my motivation was clear: I was looking for a leveraged play on $BTC (+1,08%) without investing directly in derivatives or high-risk altcoins. $MSTR (+3,77%) seemed like the perfect vehicle - an established company with an aggressive Bitcoin strategy, led by Michael Saylor, who has publicly emerged as one of the loudest BTC bulls. But what began promisingly is increasingly turning out to be a disappointing journey.
1.
Extreme volatility - without real added value
Of course, a certain amount of volatility is to be expected with a Bitcoin-related share - I was aware of that. But what increasingly bothers me is that these fluctuations often seem completely disconnected from Bitcoin's performance itself. While $BTC (+1,08%) reaches new highs, it sometimes $MSTR (+3,77%) sometimes stands still or even loses. If the leverage effect should be higher in theory, why this sluggish reaction?
2.
Dilution through capital increases
A massive damper is the repeated dilution through new share issues. In order to finance further Bitcoin purchases, MicroStrategy regularly issues new shares or bonds. What is lost in the process: shareholder value. The original leverage on Bitcoin is being diluted step by step - not only financially, but also psychologically for investors.
3.
Non-transparent communication around Bitcoin purchases
Michael Saylor may be a visionary - but as an investor I often feel like I'm being presented with a fait accompli. Bitcoin purchases no longer seem like strategically placed investments, but like one-sided bets on ever new all-time highs, regardless of the timing or market environment. As well-intentioned as the narrative is, there is a lack of clear, shareholder-friendly communication.
4.
What remains of the leverage effect?
The crucial point: the hoped-for leverage effect that made the MSTR share attractive to me no longer seems to exist. Despite a new all-time high for Bitcoin today - the share remains frozen. The Bitcoin share ratio continues to rise, but $MSTR (+3,77%) does not follow accordingly. If BTC rises 3-4% and the share price does not react at all or even reacts negatively, then it becomes clear that the narrative no longer holds.
The only leverage effect I can feel is the downward one.
Today I decided to set a stop loss at €350.
If this is executed, I will forget about the share for a while and possibly get back in at more favorable prices.
prices again.
What do you think of the share and what was your experience?
Lg
Don 💸
