"What's the appropriate premium against the net asset value of MicroStrategy? And I just want to make one obvious point. We're a growth company. We're a bitcoin treasury company, and we are growing. We are built on an asset, bitcoin, which is growing 50% a year, and we are growing with that asset.
If you review the market for common multiples of growth companies, if you had a 20% growth company, oftentimes they're valued at 25 times 40 P/E. If you have a 30% growth company, oftentimes they're valued at 35 to 55 P/E. If you have a 40% growth company, they're valued at 45 to 70 sometimes. And a company growing 50% is oftentimes valued at 60 to 100 times.
And of course, Bitcoin is growing 50%. We don't know what it'll do in the future. But my personal long-term view is over 21 years, Bitcoin is going to grow 29% ARR. And looking backward, it's definitely been growing fast, 50% every year for four years.
So how do you think about the value of the BTC, the bitcoin treasury operations, right? Not the balance sheet, not the not the reserves. But what's the operation worth? And if you expect 30% to 50% growth for bitcoin, then it's not unreasonable to have a 30 to 50 times multiple for that growth. And a 30 times to 50 times multiple means, if you were to look at this 6% to 10% target, 30 times ten is a 300% premium to net asset value, 50 times ten is a 500% premium. So you're talking about an operation that's 3 to 5 net asset value.”
- Michael Saylor