The concept of hoarding Bitcoin, known as Bitcoin Treasury or Digital Assets Treasury, gained immense popularity over the past two years, receiving inexplicably high valuations. However, this year, the concept of hoarding Bitcoin has gradually fallen out of favor with the capital markets. Today, observing Metaplanet, a former Japanese hotel chain brand that recently pivoted to embrace the 'hoarding Bitcoin' concept—its market capitalization has dropped below the value of the Bitcoins it holds. This is somewhat disheartening.
Driven by the 'hoarding Bitcoin' concept, MSTR’s share price skyrocketed to an all-time high of $543 in November last year, marking an astonishing increase of 2.5 times in just one month.
At that time, the price of Bitcoin was less than $96,000, and MSTR held 380,000 Bitcoins, with a total Bitcoin value of approximately $36.4 billion. The highest share price of $543 in November corresponded to a market capitalization of $153.9 billion—about 4.23 times the value of its Bitcoin holdings.
The stock opened higher but closed lower on the same day, plunging to a low of $371, corresponding to a market capitalization of $105.2 billion—a ratio of market capitalization to Bitcoin value of 2.89 times. The maximum intraday drop of 33% was extremely volatile.
The highest point for MSTR so far this year was USD 45.7 billion, when the number of bitcoins held exceeded 600,000, and the price of bitcoin was above USD 110,000. Therefore, compared to last year's high, this year's high saw an increase in both the number of coins held and their price...