MicroStrategy NASDAQ: MSTR stock is up more than 500% since the beginning of 2024 and has the potential to grow even more. As the world's largest corporate holder of Bitcoin (CRYPTOCURRENCY: BTC) and a potential pioneer in establishing a Bitcoin reserve bank, the company is well-positioned in an industry where the underlying asset is expected to keep appreciating in value. However, forces in play promise to bring volatility to this market, so investors should be prepared. Get MicroStrategy alerts:MicroStrat ...

MicroStrategy (NASDAQ: MSTR), a business intelligence firm turned Bitcoin (BTC) powerhouse, has once again grabbed headlines with its largest-ever Bitcoin acquisition to date. The company revealed in a filing on November 25 that it had purchased 55,000 Bitcoin between November 18 and 24 for $5.4 billion.This latest acquisition brings its total Bitcoin holdings to an eye-popping 386,700 BTC. Acquired at an average price of $56,761 per coin, the firm’s total Bitcoin investments now amount to $21.9 billion. Kn ...

MicroStrategy's Bitcoin Strategy - MicroStrategy has become one of the most valuable stocks on the Nasdaq by pursuing a simple strategy: buying Bitcoin [1] - The stock has soared alongside Bitcoin's gains this year, driven by the broader bull market, the launch of spot Bitcoin ETFs, and optimism about crypto-friendly policies under a potential new Trump administration [2] - MicroStrategy is unique in the stock market as it essentially acts like a leveraged Bitcoin ETF, with CEO Michael Saylor being one of the biggest evangelists for the digital coin [2] - As of the end of Q3 2023, MicroStrategy held 252,220 bitcoins [2] Valuation and Financials - MicroStrategy's market cap was $94.8 billion as of Nov 22, 2023, with the company now identifying itself as a Bitcoin treasury company [3] - Based on its market cap and Bitcoin holdings, the company is valued at $375,864 per token, nearly four times the price of Bitcoin ($98,807 at the time of writing) [3] - The value of Bitcoin held on MicroStrategy's balance sheet is $22.4 billion [3] - The company is sitting on a gain of $49,441 per Bitcoin, with an average purchase price of $39,266, totaling $12.5 billion in gains from its Bitcoin purchases [3] - MicroStrategy has $4.2 billion in long-term debt as it continues to borrow money and sell stock to buy Bitcoin [3] Risks and Volatility - MicroStrategy trades like a leveraged Bitcoin ETF due to its consistent increase in Bitcoin exposure, making it an outsized bet on Bitcoin's price movement [4] - The company's valuation of Bitcoin holdings could be seen as a price target for the cryptocurrency, as Bitcoin would need to reach that level for MicroStrategy's share price to make sense [4] - If Bitcoin's price collapses, MicroStrategy could become insolvent, though the crypto would have to fall sharply from its current price for that to happen [4] - A Bitcoin crash could lead to a loss of investor confidence in MicroStrategy, potentially causing the stock to be abandoned [4] Market Sentiment and Short-Selling - Citron Research, a well-known short-seller, has reversed its position on MicroStrategy, claiming the company is overvalued and its model is unsustainable [2] - Citron argues that MicroStrategy's value has completely detached from Bitcoin's performance, though it remains bullish on Bitcoin itself [2] - MicroStrategy's stock plunged 16% last Thursday when Citron published its short report [2] Investment Considerations - MicroStrategy's stock performance is heavily tied to Bitcoin's price movements, making it difficult to predict without considering Bitcoin's volatility [5] - Bitcoin's recent rise is partly attributed to the Trump administration's plans to embrace it, but the election and inauguration could lead to a pullback in the digital token [5] - Bitcoin is a high-risk asset with no fundamentals, making it prone to speculative bubbles [5] - Holding MicroStrategy stock may make sense for those bullish on Bitcoin, as it is likely to outperform Bitcoin if the cryptocurrency's price continues to rise [5] - However, if Bitcoin starts to decline, MicroStrategy investors should be prepared for the stock to crash [5]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

KEY TAKEAWAYSShares in MicroStrategy, the largest corporate holder of Bitcoin, fell Monday after the software company said it had bought $5.4 billion of the cryptocurrency.MicroStrategy ramped up acquisitions of the token this year—especially following Donald Trump’s November 5 election victory—as investors bet on a crypto-friendly administration and Congress. As of Nov. 24, MicroStrategy held 386,700 bitcoins Shares in MicroStrategy (MSTR), the largest corporate holder of bitcoin (BTCUSD), jumped pre-marke ...

Under Michael Saylor’s leadership, MicroStrategy (NASDAQ: MSTR) has become the publicly-traded company that has most closely tied its prospects to leading cryptocurrency Bitcoin (BTC).The business is the largest corporate holder of Bitcoin — and there are no signs to indicate that its accumulation strategy is slowing down. With the bull market already in full swing and BTC set to cross the $100,000 threshold any time soon, MSTR shares have benefited greatly.Chart detailing MicroStrategy’s Bitcoin accumulati ...

KEY TAKEAWAYSShares in MicroStrategy, the largest corporate holder of Bitcoin, are jumping Monday in premarket trading, as the cryptocurrency trades near the $100,000 mark for the first time.MicroStrategy ramped up acquisitions of the token this year—especially following Donald Trump’s November 5 election victory—as investors bet on a crypto-friendly administration and Congress. As of Nov. 17, MicroStrategy held 331,200 bitcoin. Shares in MicroStrategy (MSTR), the largest corporate holder of Bitcoin (BTCUSD ...

For ETF issuers, the industry can be a fickle beast. Success is often dependent on factors that are outside of their control. If a fund launches at just the right time, it can come storming out of the gate. If it debuts right before aEditor of ETF Focus on TheStreet.com. On Substack at www.substack.com/etffocus. To receive notifications of new articles and blog posts as soon as they're published, click on the orange Follow button and become a real-time follower.Analyst’s Disclosure: I/we have no stock, opti ...

Shares of MicroStrategy (MSTR 6.19%) jumped 24.7% higher this week, according to data from S&P Global Market Intelligence. The Bitcoin investment company was helped by the cryptocurrency's price appreciation this week along with a convertible debt offering at a 0% interest rate. As of the market close on Friday, Nov. 22, MicroStrategy stock is up 515.7% year to date. Here's why the stock was rising yet again this week.More Bitcoin appreciation and debt offeringBack in 2020, MicroStrategy CEO Michael Saylor ...

MicroStrategy Could Soon Reveal $3 Billion of Bitcoin Buys With Bond Proceeds ...