- October 28, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The post How MicroStrategy’s Bitcoin Investment Strategy is Shaping the Crypto Landscape appeared first on Coinpedia Fintech News
MicroStrategy Inc. (NASDAQ: MSTR), a major supporter of Bitcoin (BTC) as an investment against inflation and market uncertainties, has attracted notable attention from global investors and commentators in the recent past. With over 252,220 Bitcoins, currently worth more than $17 billion as BTC traded above $68k on Monday, the company remains a top mover in the crypto industry.
MicroStrategy’s Success Story via Bitcoin
The success of MicroStrategy through its Bitcoin plan has undeniably inspired dozens of both privately held and publicly traded companies in the past. Moreover, MSTR shares have risen over 270 percent year-to-date to trade about $242 and a total valuation of around $43.3 billion at the time of this report.
For instance, Japan’s Metaplanet Inc. (Tokyo: 3360) has aggressively accumulated more Bitcoins and recently surpassed 1k BTC units.
Before the end of this year, Microsoft’s shareholders, including BlackRock, are expected to vote on whether the $3 trillion company should invest in Bitcoin.
Cautionary Warning
As more investors proliferate into the MSTR stock market to rise along its bull market, Mads Eberhardt, analyst at Steno Research, stated in a recent note, that traders should approach the company with more caution. Eberhardt noted that the diminishing effect of MSTR’s August 10-for-1 stock split is gradually taking place.
With the company’s stock premium relative to its Bitcoin trove almost at 300 percent, Eberhardt anticipates a correction in the near term.
Moreover, Eberhardt added that MSTR’s premium relative to its Bitcoin holdings hovered below 200 percent during the 2021 crypto bull market.
If MicroStrategy is to maintain an impressive high premium relative to its Bitcoin holdings, the company must continue with its buying spree and potentially outshine the underlying BTC performance in the coming months. Furthermore, the notable high Bitcoin demand from other institutional investors is expected to drive the flagship coin to its price discovery phase in the near term.
