Bitcoin (BTC-USD) hit a fresh record high as President Donald Trump returns to the White House. Cryptocurrencies, along with crypto-related stocks like MicroStrategy (MSTR), have gained on crypto investors' optimism under Trump.
MicroStrategy is among the largest holders of bitcoin in the world.
MicroStrategy (MSTR 8.04%), which went public in 1998, was once considered a slow-growth analytics software company. It was struggling to grow in a crowded market while keeping pace with nimbler cloud-based competitors like Salesforce.
What's been the most important driver behind the continued bull market? A good case can be made that it's artificial intelligence (AI).
Jay Pestrichelli discusses some of the ETFs that Tidal offers, especially highlighting BIGY, an option income ETF. “Choice is important” for investors as they choose how to engage with options, he says.
MSTZ is a 2X inverse leveraged ETF designed to profit from declines in MicroStrategy's stock, offering downside protection and potential outsized gains for MSTR holders. Leveraged ETFs like MSTZ are short-term trading tools, not long-term investments, due to risks like volatility decay if held beyond one trading day. Using technical indicators like RSI can help time MSTZ trades to offset MSTR declines, potentially yielding significant returns despite the elevated risk.
Explore the exciting world of MicroStrategy (MSTR 8.04%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
Microstrategy (MSTR) has dipped 15% while Bitcoin only fell 5%, presenting a buying opportunity as MSTR trades at a relative discount. MSTR plans to increase authorized shares from 330 million to 10.33 billion to continue funding Bitcoin purchases, which is not immediately dilutive. Shareholders, led by Saylor, are likely to approve the share increase, ensuring MSTR's current business model continues.
Borrow money through convertible debt. Buy Bitcoin (CRYPTO:BTC) to drive prices higher.
The prices of MSTR and MARA have been stuck in consolidation phases after reaching prior highs. Key levels have been reached but confirmation is needed to turn the outlooks bullish.
MicroStrategy (MSTR 4.13%) continues buying Bitcoin as it looks to raise more capital from investors.
If bitcoin goes to the moon, a niche group of convertible-bond investors will win out. If the crypto tanks, they can ask for their money back early.