Bulls tout management’s “intelligent” use of leverage and accretive bitcoin purchases from equity sales proceeds as reasons why shares should trade at a substantial premium. But we find the logic flawed. Leverage cuts both ways and while MicroStrategy has succeeded in increasing the amount of bitcoin held, the impact of massive dilution has also kept the amount of bitcoin per share virtually unchanged in recent years. Shareholder value creation has been overwhelmingly driven by simple bitcoin price appreciation – much as it would from owning bitcoin outright.