MicroStrategy Inc.'s move to ramp up its bitcoin acquisition effort bodes well for the software company and cryptocurrency play, says analyst firm Benchmark.
Bitcoin is currently less than two percentage points away from reclaiming last week's all-time high of $93,265. At the time of writing, the BTC/USD pair was swapping for $91,700 following a 1.4% morning advance.
MicroStrategy is effectively Bitcoin's only investment bank. MSTR's unique strategy involves issuing securities backed by BTC, creating significant value through a spread between BTC's CAGR and fiat cost of capital. Its BTC purchases are best thought of as revenue, and its rock bottom costs of capital are best thought of as costs of revenue.
MicroStrategy (MSTR) shares could remain in focus on Tuesday after soaring to a new record high following news the software analytics company had purchased an additional $4.6 billion of Bitcoin (BTC).
MicroStrategy shares are surging on the software company and cryptocurrency play's $4.6 billion bitcoin buy.
MicroStrategy, the world's largest corporate holder of bitcoin, issued $4.6 billion of shares in the past week, and used proceeds to buy a like amount of the cryptocurrency.
Is It Too Late to Buy MicroStrategy Stock?
Even if you're bullish on Bitcoin, there may not be a compelling reason to invest in MicroStrategy today.
Michael Saylor, MicroStrategy CEO, joins 'Closing Bell: Overtime' to discuss the crypto rally, on the next SEC Chair and crypto outlook.
Michael Saylor is a perennial crypto bull.
Though many technology and cryptocurrency stocks have achieved massive success in 2024, with MicroStrategy (NASDAQ: MSTR) being a prime example as it is up 420.42% year-to-date (YTD), few have matched the feat accomplished by one nano-cap Bitcoin (BTC) miner.
MicroStrategy said that because of the volume of share sales to raise money to buy bitcoin, Michael Saylor, the company's co-founder and chair, will no longer hold the majority of voting power.