Barclays analyst Ramsey El-Assal initiated coverage on MicroStrategy Inc (NASDAQ:MSTR) with an Overweight rating and a price target of $146. El-Assal flagged the company's unique differentiated vehicle that allows public company investors to gain exposure to bitcoin, resilient capital deployment model offering a long runway for continued bitcoin accumulation and protection from black swan liquidity events, software performance backed by a fast-growing TAM and demand for next-gen technology, the mix shift towards subscription services leading to higher-margin and recurring revenue and the software business' high retention rates.
Economic uncertainties and interest rate concerns contributed to Bitcoin's drop last month. The cryptocurrency typically sees price gains months after its halving events, but the expected gains should come a bit later.
A grand total of 13 prominent businesses have announced stock splits since the start of 2024. Two brand-name companies, with well-defined competitive advantages, are priced to be bought by opportunistic long-term investors.
YieldMax MSTR Option Income Strategy ETF actively manages an options strategy on MicroStrategy to generate substantial income, earning a BUY rating. MSTY's strategy involves shorting synthetic covered calls/puts and holding short-term US treasuries, providing a high forward distribution rate of 100.54%. Despite being bearish on MSTR, MSTY offers stability and income through its actively managed options strategy, making it appealing for passive equity investors.
Nvidia's gold standard processors form the foundation of the artificial intelligence (AI) revolution. MicroStrategy's AI and cloud software take a back seat to its Bitcoin strategy.
MicroStrategy stock is up over 100% in 2024. The enterprise software company holds 226,500 Bitcoins.
MicroStrategy shares have doubled in 2024 and tripled over the last year. Bitcoin gained 36% and 97% over the respective periods.
MicroStrategy stock is up substantially year to date even though the company swung to a net loss. Cost-discipline watchers might object to MicroStrategy's willingness to incur debt to purchase Bitcoin.
Investors will now have the opportunity to buy a fund leveraged to a company that is leveraged to an asset that often is bought on leverage.
Bitcoin could soar in price over the next decade. But that's not the only reason billionaires are buying Bitcoin.
Software development firm MicroStrategy Inc. MSTR hasn't been the same since it embraced Bitcoin BTC/USD four years ago, with the firm's stock returning more to its investors than Warren Buffett's Berkshire Hathaway Inc. BRK BRK throughout this time.
The Yieldmax MSTR Option Income Strategy ETF provides high current income from writing covered calls on MSTR shares. MSTY's 105% annualized distribution yield simply reflects the riskiness of MSTR shares. There is no long-term systematic edge from selling call options. 3 questions investors should ask are: 1) Do they like MSTR, 2) Do they want to trade upside for yield. 3) Do they want to trade unrealized gains for income?