MicroStrategy Secures 7K Per Bitcoin in Major Bitcoin Purchase
December 30, 2022
Trending News ☀️
MICROSTRATEGY ($NASDAQ:MSTR): MicroStrategy Incorporated is a publicly traded business intelligence and analytics software firm based in Tysons Corner, Virginia. The company has a long history of providing innovative software solutions to businesses around the world. In a major move, MicroStrategy recently announced that it had purchased 2,400 bitcoins for a total of $42.8 million in cash. This works out to an average purchase price of $17,700 per bitcoin. This purchase is part of an ongoing strategy by MicroStrategy to diversify its assets into digital currencies.
This purchase could signal the start of an influx of institutional investment into the digital asset class as more companies start to take notice and follow suit. It also serves as an endorsement for the long-term viability of bitcoin and other cryptocurrencies. MicroStrategy’s purchase of 7K per bitcoin also highlights the company’s willingness to take risks in order to achieve its long-term goals. As more companies begin to recognize the potential of digital assets, it could lead to an increase in investment from traditional institutions, which would be a major boost for the industry as a whole.
Stock Price
MicroStrategy Incorporated made headlines recently when it announced that it had secured 7K per Bitcoin in a major Bitcoin purchase. The news of the Bitcoin purchase did little to cushion the impact of the bad news, and on Wednesday the stock opened at $147.0 and closed at $138.1, a drop of 6.5% from its previous closing price of $147.7. This is the first time that a public company has made such a large Bitcoin purchase, and this news could potentially have a positive impact on the price of Bitcoin in the future. The decision to purchase the Bitcoin was made by CEO Michael Saylor, in order to hedge against inflation and safeguard the company’s assets.
Saylor has also been vocal in his support of Bitcoin as a long-term investment, and this purchase is seen as a validation of his views on the currency. It remains to be seen if this move by MicroStrategy Incorporated will have a positive or negative effect on its stock price in the long run. In the meantime, investors are keeping a close eye on the company in order to see how this move pans out for them. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Microstrategy Incorporated. More…
| Total Revenues | Net Income | Net Margin |
| 501.23 | -1.31k | -113.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Microstrategy Incorporated. More…
| Operations | Investing | Financing |
| 24.66 | -825.21 | 815.57 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Microstrategy Incorporated. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.55k | 2.75k | -17.7 |
Key Ratios Snapshot
Some of the financial key ratios for Microstrategy Incorporated are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.1% | 126.2% | -75.5% |
| FCF Margin | ROE | ROA |
| -159.7% | 122.1% | -9.3% |
VI Analysis
Investors who are interested in the long term potential of MicroStrategy Incorporated should consider the company’s fundamentals. The VI Star Chart shows that MicroStrategy Incorporated has strong profitability, but is weak in assets, dividends, and growth. The company’s health score of 6/10 indicates that it is likely to pay off debt and fund future operations. Furthermore, as an ‘elephant’ company, it is rich in assets after deducting off liabilities. Investors should consider the company’s cash position, debt structure, and financial history. Also, its return on assets and return on equity can be revealing about its profitability and how well it uses its assets. The risk profile of the company should also be taken into account when making an investment decision. This includes the company’s credit rating and corporate governance practices. In addition, investors should look at the company’s competitive position in the marketplace. This includes understanding the competitive landscape in which it operates and assessing its competitive advantages and disadvantages. It is important to understand the company’s competitive strategy and how it has evolved over time. Additionally, investors should understand the company’s competitive strengths and weaknesses, as well as its competitive position relative to its peers. Overall, investors should conduct due diligence when considering an investment in MicroStrategy Incorporated. By analyzing its fundamentals, assessing its competitive position, and understanding its risk profile, investors can make an informed decision about whether or not to invest in the company. More…
VI 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
Despite the news coverage of the move mostly being negative, the stock price of the company dropped the same day. This could be seen as a risky move, however, investors may see it as a sign that the company is optimistic about the future of cryptocurrency and is willing to invest in its potential. Ultimately, investing in MicroStrategy Incorporated may be risky as it is a relatively new venture into cryptocurrency, but with the potential for high returns.
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