Previously Strategies MicroStrategyAccording to Damped Spring Advisors CEO and CIO Andy Constan, when measuring themselves against an S&P 500 company last month, they misrepresented the business to investors.
It’s “100% fraud” Bitcoin– The purchase company compared prices and returns on slides during its second quarter revenue presentation, compared with things like Apple and Nvidia, and Wall Street veterans episode Although Bitcoin released it on Monday.
The slide implies that strategy revenues will be repeated when performance is driven by an increase in the value of Bitcoin holdings “one-time market-to-market”; Constan argued.
“They are marketing to investors (the revenue) as repeat revenue worth multiples,” he added. “It’s deceptive.”
Macro analyst Lynne Alden, who was also featured as a guest on the podcast, said, “I don’t know if I’d call it fraud, but I don’t agree with the charts that show P/E comparisons.”
Decryption I contacted Strategy for comments.
The slide from the second quarter revenue of the strategy believes Andy Constan can live in the infamous. Image: Strategy
Strategic stocks fell 4.35% on Thursday and traded at $372.92 after falling 2.2% the previous day. Yahoo Finance. The stock still has an annual increase of 33%, but the stock has slid 11% from $447 in the past month.
Bitcoin‘Meanwhile, S prices have recently dropped by 3.7% in the past 24 hours. It reached a fresh high of over $124,000 on Wednesday, according to Crypto Data Provider Coingecko.
Prices and return rates (P/E) generate multiples that can be used to assess the relative value of a stock, compared to the revenue that generates the company’s stock price. As of July 29th, the strategy had a P/E multiple of 4.7 times, with chipmaker Nvidia’s at 40.8 times.
“There are only five companies in the S&P 500 universe that have a lower PE than us,” Strategy CEO and President Phong Lee said in the company’s second quarter revenue call. “We are probably the most misunderstood and undervalued stocks in the United States and potentially the world.”
strategy Disclosure Second quarter earnings of $10 billion last month, or $32.60 per common stock. Meanwhile, the company posted $114.5 million in second quarter revenue, primarily from its software subscriptions and product support offerings.
Under the Generally Acceptable Accounting Principles (GAAP), the strategy has started recording Bitcoin Holdings at fair value this year, reflecting price fluctuations between quarter and four quarters. under Previous rulesthe company recorded cryptocurrency at its original cost. They could write them down as “impairment charges” if their value fell, but they were unable to mark them up when prices rose.
Despite changes in GAAP rules, strategies need to be aware of how revenues are portrayed. Because Bitcoin “when the market falls, it will become the biggest loser of that quarter in history,” Constan argued.
Constan, who has not opposed to Bitcoin as an investment, claimed that the strategy is similar to the Ponzi scheme, as he issues many preferred shares to buy Bitcoin and “there is no hope of paying priority dividends without new revenue from the issuance.”
First quarter, strategy Disclosure A loss of $5.9 billion or a decrease of $16.49 per common stock after Bitcoin prices fell. strategy I warned Although first quarter profits are questionable one month ago, the same class action lawsuit claiming securities fraud is It was then submitted.
The lawsuit denounced the strategy of creating an official statement “false and misleading” about the expected profitability of the Bitcoin financial strategy. The SEC filing indicates that the company is “intent to defend these claims vigorously.”
However, if the strategy fails, Constan said any legal battle could be hidden and that the slide in question could remember for years to come.
“The scam would be the least of Saylor’s problems,” he said. “That slide will be infamous.”
