Odaily News MicroStrategy’s (MSTR) current premium over its Bitcoin (BTC) holdings is unlikely to last, Steno Research said in a report on Friday. “This belief is further supported by the diminishing effect of the stock split MicroStrategy recently undertook,” analyst Mads Eberhardt wrote, adding that the upcoming launch of spot Bitcoin exchange-traded fund (ETF) options in the U.S. will also reduce investors’ incentive to hold the stock instead of those ETFs. The software company founded by Michael Saylor conducted a 10-for-1 stock split in August, a move Steno believes contributed to the recent rally. Steno noted that MicroStrategy’s premium over its Bitcoin reserves has recently surged to nearly 300%. This suggests that the company’s valuation “is significantly diverging from a simple calculation of its assets and business fundamentals,” the report said. As regulators become more friendly to Bitcoin and cryptocurrencies overall, investors may choose to hold Bitcoin directly instead of MicroStrategy’s shares. Steno said this regulatory trend is expected to continue if Donald Trump is re-elected. Bitcoin is expected to perform strongly this quarter and into 2025, which means that "higher buying demand is needed to maintain MicroStrategy's current premium." The report added that MicroStrategy's current premium is unsustainable, especially considering that its premium was below 200% for most of the time during the 2021 cryptocurrency bull run. (CoinDesk)