MicroStrategy Makes Boldest Bitcoin Bet Since February 2021

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MICROSTRATEGY ($NASDAQ:MSTR): MicroStrategy Incorporated is a publicly traded business intelligence software company that provides mobile, cloud-based software solutions to medium and large businesses. Since February 2021, MicroStrategy has made the boldest Bitcoin bet yet, investing more than $2 billion of its balance sheet into the digital currency. This move marks the second time in as many years where the company has invested heavily in Bitcoin, further cementing their commitment to cryptocurrencies. This investment has since ballooned to more than $2 billion with subsequent purchases. The company believes that Bitcoin is a reliable store of value and a hedge to inflation and other macroeconomic risks.

As such, they have opted to allocate a portion of their funds to Bitcoin in order to diversify their investor portfolio and reduce risk. His advocacy of Bitcoin has seen him work on collaborations with other companies as well as initiatives like the #BitcoinForCorporations campaign. By making this landmark investment, MicroStrategy has set the example for other businesses who may be interested in diversifying their portfolios by investing in Bitcoin.

Share Price

On Thursday, MICROSTRATEGY INCORPORATED made one of the boldest statements in the cryptocurrency market since February 2021 when its stock opened at $498.0 and closed at $498.3, down by 1.7% from last closing price of 507.1. This news caused some shockwaves in the crypto market and has been considered to be a bullish move by many investors. This further reinforces their commitment to the cryptocurrency market and their belief that Bitcoin is a reliable and valuable asset to invest in. Their bullish stance and enthusiasm for the digital currency has been made clear with this latest move and has caused many investors to take notice.

The company’s CEO and Chairman, Michael Saylor, stated that this purchase allows them to “further diversify and maximize returns” on their assets. With MICROSTRATEGY INCORPORATED making such a bold move in the cryptocurrency market, it is clear that they are dedicated to growing their position in the digital asset space. This could be a great opportunity for investors looking to capitalize on their enthusiasm and capitalize on their confidence in the long-term value of Bitcoin. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Analysis

At GoodWhale, we conducted an analysis of MICROSTRATEGY INCORPORATED‘s wellbeing to generate a Star Chart. The Star Chart showed that MICROSTRATEGY INCORPORATED had an intermediate health score of 6/10, taking into account their cashflows and debt. We concluded that MICROSTRATEGY INCORPORATE is likely to be able to pay off debt and fund future operations. On closer inspection, we identified that MICROSTRATEGY INCORPORATED is strong in profitability, however weak in asset, dividend, and growth. We then classified MICROSTRATEGY INCORPORATED as ‘sloth’, which refers to companies that have achieved revenue or earnings growth slower than the overall economy. Given the characteristics of MICROSTRATEGY INCORPORATED, value and income investors may be interested in such a company. These investors typically focus on finding companies with strong fundamentals such as profitability and stability, which can lead to long-term returns. More…

Peers

The company’s main competitors are Coinbase Global Inc, Riot Blockchain Inc, Bakkt Holdings Inc.

– Coinbase Global Inc ($NASDAQ:COIN)

Coinbase Global Inc is a digital asset exchange company. The Company’s mission is to create an open financial system for the world. The Company operates a digital currency exchange platform for individual and institutional investors, traders, and developers. The Company offers its products and services through its online platform and mobile application. The Company serves customers in North America, Europe, Asia Pacific, South America, and the Middle East and Africa.

– Riot Blockchain Inc ($NASDAQ:RIOT)

Riot Blockchain Inc has a market cap of 893.37M as of 2022. The company’s ROE for the same year is -2.48%. Riot Blockchain Inc is a provider of blockchain technology solutions to the global financial markets. The company’s mission is to be the leading blockchain technology provider in the world.

– Bakkt Holdings Inc ($NYSE:BKKT)

Bakkt Holdings Inc is a company that provides digital asset custody, trading, and other financial services. As of 2022, the company had a market capitalization of 164.26 million and a return on equity of -26.03%. The company’s primary focus is on digital assets, such as Bitcoin, and providing custody, trading, and other financial services related to these assets.

Summary

This makes it the largest single investment in cryptocurrency to date by any publicly traded company. This move is seen as part of a broader plan to diversify the company’s portfolio, with many analysts speculating that the move will bring in high returns over the long-term. The aim of the investment is to capitalize on the rise in the value of Bitcoin, as well as the potential for a more widespread adoption of cryptocurrency in the future. It is clear that MicroStrategy is taking a long-term approach to investing in cryptocurrency, and investors should remain aware of the risks and rewards associated with this decision.