Bitcoin

This Crypto Stock More Than Doubled Bitcoin’s Gains This Year

Published

7 months ago

18 June, 2024

One of the best ways to invest in crypto is by holding Bitcoin (CRYPTO: BTC). The popular cryptocurrency is up around 60% this year. The excitement surrounding Bitcoin’s latest halving event and new exchange-traded funds (ETFs) related to the digital currency are just a few reasons why crypto has been a hot place to invest this year.

But with Bitcoin having a valuation of nearly $1.3 trillion, its high price can make it difficult to earn the kind of returns you might get from a crypto stock that has a modest valuation. A popular crypto stock which has vastly outperformed Bitcoin this year is Microstrategy (NASDAQ:MSTR)

MicroStrategy Shares Are Up More Than 130% in 2024

Technology company MicroStrategy has been a hot buy this year as it has more than doubled in value, largely as a result of Bitcoin.

For MicroStrategy, encryption is a big part of its strategy. The company routinely updates investors on its Bitcoin holdings. When it announced its first quarter results, it reported how many Bitcoins it had acquired since the end of the last quarter (25,250) and how many it currently owned (214,400).

The company recently announced that it will raise $500 million through a senior convertible note offering to acquire more Bitcoin. It states that it will also use the money for “general corporate purposes,” which effectively can include virtually any type of corporate expense.

MicroStrategy’s focus on acquiring Bitcoin has made it an attractive option for crypto fans as the business will benefit from the rising price of Bitcoin. However, you will also incur losses if the value of the cryptocurrency declines, but this is a risk that many crypto investors seem willing to take.

The company’s fundamentals are not good

If you were looking at MicroStrategy based on its own merits and fundamentals as a business, it wouldn’t be such a promising investment. And odds are, your returns wouldn’t be anywhere near where they are now.

The company’s business intelligence software helps companies make data-driven decisions and uses artificial intelligence. But growth has been hard to come by lately. In the first three months of 2024, MicroStrategy reported sales of $115 million, which declined more than 5% year over year. And even if you exclude impairment losses on the company’s digital assets, which totaled $192 million last quarter, MicroStrategy would still have incurred a loss of $12 million during the period.

This is not a profitable company, nor has it been growing recently. And there’s a lot of competition in the business intelligence space, which also makes its future growth prospects questionable. MicroStrategy has effectively become primarily a crypto play; Last quarter, the company spent $1.6 billion on acquiring digital assets, compared to just $1.5 million on purchases of facilities, property and equipment.

The story continues

Should you invest in MicroStrategy stock?

MicroStrategy shares trade at nearly 4,000 times net income, more than 50 times revenue and more than 11 times book value. It is extremely expensive stock. Based on its fundamentals and what the company’s core business is supposed to be, there isn’t much reason to invest in MicroStrategy.

The company’s focus on acquiring Bitcoin could make it a more attractive option than owning Bitcoin directly, and that’s the type of investor MicroStrategy could attract. With a much lower valuation than Bitcoin, it could be a good way to get exposure to crypto. But if you’re not bullish on Bitcoin, you might want to avoid MicroStrategy because while the stock’s gains look great this year, its future returns will largely depend on how high the digital currency goes — and that could be incredibly difficult. to predict.

Should you invest $1,000 in MicroStrategy now?

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This Crypto Stock More Than Doubled Bitcoin’s Gains This Year was originally published by The Motley Fool

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Related Topics:Bitcoin Digital Currency Microstrategy profitable company

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We are the editorial team of SatoshiTimes, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on SatoshiTimes, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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