By late last week, the sudden drop in Bitcoin’s price was crushing shares of Strategy, controlled by the signature crypto currency’s most famous champion and beneficiary, Michael Saylor. What has gone mainly unnoticed: Strategy’s still selling at a big premium to the underlying value of its assets, almost entirely parked in Bitcoin, less the multiple-billions it effectively owes to borrowers and holders of its preferred stock. That extra lift appears to be a vestige of Saylor’s past sorcery in getting his stock’s value racing far faster than the price of Bitcoin, a dynamic that enabled him to keep raising the tokens investors “owned” per share in a kind of magical “accretion” game.
But that wizardry disappeared…
