Bybit, the second-largest cryptocurrency exchange globally, has released a new report on Strategy, analyzing its unique position within the BTC ecosystem and its valuation strategy.
Overview and Methodology of Analysis
The Bybit report titled 'Bybit TradFi x Crypto Report' focuses on the company Strategy (NASDAQ: MSTR), which stands out for its BTC accumulation strategy. The analysis emphasizes the company's true value excluding its historical software operations.
Key Findings and Statistical Data
The report states that Strategy holds over half a million BTC and trades at a 68% premium compared to the net value of its BTC treasury, estimated at $107 billion. A statistical analysis suggests a potential fair value of the stock at $468, approximately 17.9% higher than current trading levels at $384.
Risks and Potential Threats to Strategy
Despite aggressive BTC accumulation, Strategy manages its leverage with a loan-to-value ratio of 11.46%, providing a cushion against market volatility. However, the report mentions that the company has yet to face significant stress tests in the case of a major market correction.
The Bybit analysis highlights Strategy's uniqueness as an asset related to BTC and points out the associated risks with its strategy. While there are potential benefits in a bullish BTC market, the company also faces considerable risks that need to be addressed.
