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?
Stock-split euphoria has taken hold on Wall Street, with 12 prominent businesses announcing or completing a split over the last six months. MicroStrategy is set to complete its largest forward-stock split following the close of trading on August 7.
MSTR introduced a new KPI called "BTC Yield" to measure the growth in BTC holdings per share, setting the foundation for greater clarity on their Bitcoin strategy. MSTR's use of convertibles to finance BTC purchases at low interest rates is a clever strategy to maximize BTC Yield and leverage their capital structure. Despite a mediocre software business, MSTR's focus on BTC Yield make it a compelling buy, although short-term BTC price volatility remains a risk.
U.S. stock futures were lower this morning, with the Dow futures falling around 700 points on Monday.
MicroStrategy Incorporated (NASDAQ:MSTR ) Q2 2024 Earnings Conference Call August 1, 2024 5:00 PM ET Company Participants Shirish Jajodia - Vice President of Investor Relations and Treasury Phong Le - President and Chief Executive Officer Andrew Kang - Senior Executive Vice President and Chief Financial Officer Michael Saylor - Executive Chairman Shirish Jajodia [Starts abruptly] -- Investor Relations and Treasury at MicroStrategy. I'll be your moderator for MicroStrategy's 2024 Second Quarter Earnings Webinar.
A dozen time-tested businesses have announced and/or completed a stock split since 2024 began. Two ultra-popular stock-split stocks with nosebleed valuations are rife with red flags and worth avoiding.