With Bitcoin (CRYPTO: BTC) prices peaking to all-time high levels, MicroStrategy's (NASDAQ:MSTR) aggressive Bitcoin accumulation strategy has once again become a focal point in discussions among traders and analysts.

What Happened: In a tweet on Monday, industry expert Alex Kolicich addressed common misconceptions about MSTR in a recent tweet, explaining that the stock is neither a leveraged nor a synthetic call option on Bitcoin.

Instead, Kolicich pointed out several structural inefficiencies:

• MSTR trades at a 140% premium to its Bitcoin holdings' net asset value (NAV).
• Each $1 invested in MSTR stock provides only $0.45 of Bitcoin exposure, far less than direct Bitcoin ownership.

Kolicich further elaborated that MicroStrategy is not leveraged but instead deleveraged, offering reduced Bitcoin exposure compared to direct investments.

He highlighted alternatives like BITX, which provide 2x leverage without a NAV premium.

Additionally, while traditional call options on assets typically offer leveraged upside due to their long volatility exposure, MSTR's convertible bonds effectively short volatility, diluting shareholder returns as Bitcoin prices rise.

Also Read: MicroStrategy Expands Bitcoin Holdings By 15,350 BTC Worth $1.5 Billion After Joining Nasdaq 100

Why It Matters: Crypto trader TheFlowHorse on Dec. 17 in a post on X emphasized the implications of Saylor's aggressive Bitcoin purchases, noting that these acquisitions have significantly raised MicroStrategy's DCA to $61,000.

This figure is approximately 40% higher than Bitcoin's current price, introducing potential risks if prices fail to recover significantly.

Analysts warn that while Bitcoin's pullbacks have historically been rare, Saylor's strategy could leave MSTR exposed to potential downside risk, especially with its C-Corp structure subject to double taxation, unlike more efficient ETFs.

• Trump Serious About Bitcoin Reserve, Says MicroStrategy's Michael Saylor: 'Buy It Now And Own The Future'

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