Is MicroStrategy's STRC Stock Actually Worth 13% More?

Khing Oei, a veteran who spent 25 years valuing debt at Goldman Sachs, thinks the market is getting it wrong with MicroStrategy. He argues that the company's STRC preferred stock is trading at a major discount. While the shares sit near $85, Oei says his math puts the real value closer to $96. That is a 13% gap that many traders might be overlooking.

The confusion often comes down to the yield. Most investors see a 14% payout and worry it might be too risky to last. Oei disagrees. He looked at the massive pile of 843,775 Bitcoin and found that even if the price of Bitcoin stays flat forever, there is enough money to pay dividends for 29 years. Right now, the market is only pricing in 17 years of payouts.

For traders, this creates an interesting setup. If Bitcoin climbs toward $80,000, these shares could return to their full $100 face value. There is still risk, as skeptics like Peter Schiff still warn of a potential crash. However, with billions in assets backing a relatively small dividend bill, the former Goldman pro believes the current doubt is misplaced. Watch for the share price to move as Bitcoin tests new levels.