Glenn Hodl, an overseas cryptocurrency influencer, believes that even if the price of Bitcoin does not continue to grow, Microstrategy can take advantage of the differences in market valuation models for commodities and companies to create a “perpetual motion machine” that can sustainably increase its own market value, making it the largest company by market capitalization. Microstrategy holds Bitcoin as an asset, and since companies are valued at a discount to their future value, while commodities are traded at current prices, there is a difference in how the market values Microstrategy. If the market expects the value of Bitcoin to increase in the future, the value of Microstrategy’s Bitcoin holdings should also increase, creating a second-order effect that allows Microstrategy to continue to capture this premium expectation, increasing its market value.
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