MicroStrategy (NASDAQ: MSTR) is once again making headlines with its ambitious plan to transform into the world's first “Bitcoin bank,” a move that has sparked renewed interest from investors.
Here's a look at the history of MicroStrategy and where the stock stands today.
Investors may be worried about the future of the computer and technology sector, especially now that the former darling in the space, NVIDIA Co., is threatening to go into a correction in potentially the coming months. However, recent economic data suggests that there are other names in the space that are still worth taking another look into.
MicroStrategy's new BTC Yield metric, showing a 17.8% increase YTD, justifies its 2x premium over its BTC holdings. MSTR's intelligent use of convertible debt to monetize amplified BTC volatility enables superior financing for increasing BTC per share. The recent $30.6 million interest expense reduction signals MSTR's possible debt servicing limits, impacting future BTC purchases and convertible issuances.
MicroStrategy (MSTR, Financial) stock experienced a movement today primarily due to its strategic maneuvers involving Bitcoin. The stock closed at a price of $172.70, reflecting a 5.69% increase in its value.
Why did MicroStrategy's stock soar in September? The gains start and end with Bitcoin, but there's more to the story.
MicroStrategy MSTR has become one way many investors have found to get into Bitcoin BTC/USD. Looking at the returns of the two over the past three years, investing in MicroStrategy has been far superior to investing in Bitcoin.
Shares of MicroStrategy Inc (MSTR, Financial) surged 4.53% in mid-day trading on Oct 2. The stock reached an intraday high of $170.10, before settling at $170.07, up from its previous close of $162.70.
MicroStrategy's innovative strategy of leveraging cheap debt to invest in Bitcoin has significantly increased its market cap from $1.44 billion to over $30 billion in five years. By issuing non-recourse debt at sub-1% interest rates and consistently buying Bitcoin, MicroStrategy has created a self-sustaining cycle of stock price appreciation. The company's increasing Bitcoin per share metric offers direct exposure to Bitcoin's growth, positioning MicroStrategy as a pioneer in a new corporate treasury model.
U.S. stock futures were slightly lower this morning, with the Nasdaq futures falling around 0.1% on Monday.
MicroStrategy NASDAQ: MSTR has become one way many investors have found to get into Bitcoin (BTC). Looking at the returns of the two over the past three years, investing in MicroStrategy has been far superior to investing in Bitcoin.
Michael Saylor recently predicted that Bitcoin would hit a price of $13 million by 2045. To do so, Bitcoin would need to generate annualized returns of 30% for the next two decades.