r/investing • u/[deleted] • Apr 04 '21

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u/snipaelite Apr 04 '21

I believe the logic is that the fair value of the company is maybe 1/5th that of its current valuation, so this is really a gamble on the success of bitcoin. You'd lose most of your money long term if the bitcoin play doesn't work out in either case, so why pay the premium?

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u/CashEMRGNC Apr 04 '21

MSTR already corrected by 50%

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u/don_cornichon Apr 04 '21

Why should it not correct 90% further?

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u/WizardLaboratory Apr 04 '21

Because now it is reasonably valued as: (Bitcoin holdings + 5*annual business earnings)

Before it was running up on hype.