The Steno Research report on October 28th said that the current premium of MicroStrategy (MSTR) relative to its Bitcoin (BTC) holdings is unlikely to continue. 'This belief is further supported by the recent weakening of the stock split effect conducted by MicroStrategy,' analyst Mads Eberhardt wrote, adding that the upcoming launch of the spot Bitcoin exchange-traded fund (ETF) options in the United States will also reduce the motivation for investors to hold the stock instead of these ETFs. The software company founded by Michael Saylor conducted a 10-to-1 stock split in August, which Steno believes contributed to the recent rise. Steno pointed out that the premium of MicroStrategy relative to its Bitcoin reserves has recently soared to nearly 300%. The report stated that this indicates that the valuation of the company 'significantly deviates from the simple calculation of its assets and business fundamentals'. As regulatory agencies become more friendly to Bitcoin and the overall cryptocurrency, investors may choose to hold Bitcoin directly instead of MicroStrategy's stock. Steno stated that if Donald Trump is re-elected, this regulatory trend is expected to continue. Bitcoin is expected to perform strongly in this quarter and in 2025, which means that 'higher purchasing demand is needed to maintain MicroStrategy's current premium'. The report also added that MicroStrategy's current premium is unsustainable, especially considering that during the cryptocurrency bull market in 2021, its premium was mostly below 200%. (CoinDesk)