MSTR VALUATION: DCF DISCOUNT AND BITCOIN LIQUIDITY RISK

99bitcoins reported that the current transaction price of Micro-Strategics (MSTR) was about 43 per cent below the estimated value of its discount cash flow (DCF) model. The fact that the company had recently sold Bitcoin, valued at $216 million, to pay priority dividends was in direct contradiction with its valuation. According to the analyst Bailey Pemberton, the intrinsic value of MSTR was approximately $165 per share, 43.1 per cent higher than the current share price. The model is based on free cash outflows of approximately $72 million over the past 12 months and projects recovery and growth from this negative base. While the DCF model shows an upward potential, the company ' s risk of holding bitcoin centrally may affect the value of ordinary shareholders。