Latest news with #BitcoinTreasuryCompany
Business Wire
26-05-2025
- Business
- Business Wire
Strategy Announces ATM and BTC Activity Updates
TYSONS CORNER, Va.--(BUSINESS WIRE)--MicroStrategy® Incorporated d/b/a Strategy™ (Nasdaq: MSTR/STRK/STRF) ('Strategy' or the 'Company'), the largest corporate holder of bitcoin and the world's first Bitcoin Treasury Company, today announced updates with respect to its at-the-market offering programs and bitcoin holdings. ATM Updates Strategy announced updates with respect to its at-the-market offering programs: BTC Update Strategy announced updates with respect to its bitcoin holdings: About Strategy MicroStrategy Incorporated d/b/a Strategy (Nasdaq: MSTR/STRK/STRF) is the world's first and largest Bitcoin Treasury Company. We are a publicly traded company that has adopted Bitcoin as our primary treasury reserve asset. By using proceeds from equity and debt financings, as well as cash flows from our operations, we strategically accumulate Bitcoin and advocate for its role as digital capital. Our treasury strategy is designed to provide investors varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed-income instruments. In addition, we provide industry-leading AI-powered enterprise analytics software, advancing our vision of Intelligence Everywhere. We leverage our development capabilities to explore innovation in Bitcoin applications, integrating analytics expertise with our commitment to digital asset growth. We believe our combination of operational excellence, strategic Bitcoin reserve, and focus on technological innovation positions us as a leader in both the digital asset and enterprise analytics sectors, offering a unique opportunity for long-term value creation. Strategy, MicroStrategy, and Intelligence Everywhere are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.
Yahoo
30-04-2025
- Business
- Yahoo
Better Buy: Bitcoin vs. Strategy (MicroStrategy)
Over both a 12-month and five-year time period, Strategy stock has outperformed Bitcoin. Strategy has gone all-in on its Bitcoin acquisition strategy, even going so far as to rebrand itself as a Bitcoin Treasury Company. Strategy's stock market valuation is now completely dependent on the price of Bitcoin continually rising. In four of the past five years, Bitcoin (CRYPTO: BTC) has been the top-performing asset in the world, and it hasn't even been close. In 2020, 2023, and 2024, Bitcoin delivered triple-digit returns to investors. Over the past five years, Bitcoin is now up a head-spinning 956%. It might seem unfathomable, then, that any stock could possibly surpass Bitcoin's performance over that time interval. So you might be surprised that Strategy (NASDAQ: MSTR) -- the company formerly known as MicroStrategy -- has done exactly that. In 2025, Strategy is up 20% at a time when Bitcoin is struggling. So is it a better buy? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » It really doesn't matter what time period you look at -- year to date, 12 months, or five years -- Strategy has surpassed the performance of Bitcoin. As you can see in the chart below, the performances of Strategy and Bitcoin were highly correlated until early 2024, when there was a notable divergence. Over the past five years, Strategy is now up 2,758%, compared to Bitcoin's 956%. Based on that figure alone, you might be persuaded that Strategy is a superior investment. The five-year time period is important. That's because August 2020 was the official kick-off of Strategy's Bitcoin acquisition spree. Since then, the company has been steadily buying Bitcoin, and now holds 538,200 BTC on its balance sheet. At today's prices, that Bitcoin is worth an impressive $50 billion. In fact, Strategy holds so much Bitcoin that it's now the largest corporate holder of Bitcoin in the world. It even holds more Bitcoin than the U.S. government. And it has gone all-in on Bitcoin, going so far as to rebrand itself earlier this year as a Bitcoin Treasury Company (BTC). Its primary mission these days is to find ever more creative ways to buy and hold Bitcoin. Thus, investing in Strategy is one way to get exposure to Bitcoin without buying Bitcoin directly in the spot cryptocurrency market. As such, Strategy has become popular as a Bitcoin proxy stock. If you don't want to buy Bitcoin directly, you can buy Strategy stock instead. However, in January 2024, the new spot Bitcoin ETFs rolled out. Suddenly, investors had three different ways to get exposure to Bitcoin: 1) buying Bitcoin directly; 2) buying Bitcoin indirectly via a spot Bitcoin ETF; and 3) buying a Bitcoin proxy stock such as Strategy. That's why the sudden divergence between the performances of Bitcoin and Strategy in early 2024 is so interesting. In hindsight, it appears that many investors concluded that investing in Strategy stock was better than investing in a Bitcoin ETF, and even better than investing in Bitcoin directly. In fact, they're now willing to pay a hefty premium for that stock. Strategy's Bitcoin holdings are worth $50 billion, but the company's market cap is roughly $100 billion. In short, add up the value of the company's Bitcoin holdings, double it, and that's what investors think Strategy is worth. There are a few possible explanations for this premium. The obvious explanation, of course, is that Strategy still has a software business, even if it is a money-loser. So there's some value there. The company is still more than just a pure Bitcoin Treasury Company, and it's not fair to assign zero value to the software business. Another possible explanation is that investors are pricing in massive gains for the company's Bitcoin holdings. In fact, investors appear to be expecting the price of Bitcoin to double within the next 12 months. Thus, even though Strategy is carrying $50 billion of Bitcoin on its balance sheet, investors think that it will soon be worth $100 billion. Given that Bitcoin has delivered triple-digit gains in three of the past five years, that's not out of the question. The final explanation is that investors are willing to pay a premium for the management skills of Michael Saylor, the founder and executive chairman of the company. After all, Saylor is a top Bitcoin evangelist who continually finds new and creative ways to pay for all that Bitcoin. That's where things get interesting -- or scary, depending on your perspective. At some point, this endless Bitcoin acquisition strategy may no longer be sustainable. If the software business is no longer profitable, then the company is completely dependent on the price of Bitcoin continually rising. It's not just that the price of Bitcoin has to rise -- it has to soar in value. Otherwise, the stock no longer deserves its lofty premium. No wonder Strategy is trying to convince everyone -- including the U.S. government -- to buy as much Bitcoin as they can. New buyers mean that the price of Bitcoin can keep going up. It's fantastic that there are so many different ways to get exposure to Bitcoin, but the best choice for me is still buying Bitcoin directly. I'm still not convinced that any company -- no matter how visionary -- can outperform Bitcoin over the long haul. Before you buy stock in Strategy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Strategy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,818!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $666,416!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. Better Buy: Bitcoin vs. Strategy (MicroStrategy) was originally published by The Motley Fool
Yahoo
28-03-2025
- Business
- Yahoo
1 Crypto Stock That Could Go Parabolic
Over the past five years, shares of Strategy (NASDAQ: MSTR) are up by a whopping 3,000%. It continues to be one of the hottest stocks on the market, with a gain of 80% over the past 12 months. And year to date, it's up by a robust 15%, despite the broader market's slide. And the best may be yet to become. That's because Strategy -- until recently known as MicroStrategy -- remains resolute in pursuing its Bitcoin (CRYPTO: BTC) buying mission. If the price of Bitcoin goes parabolic, as many expect it to do, then the stock could go parabolic as well. Right now, Strategy holds 506,187 Bitcoins on its balance sheet, worth a total of about $45 billion at current market prices. That makes it the largest corporate holder of the crypto in the world, with just over 2.5% of the total circulating supply. For comparison, the U.S. federal government holds 200,000 Bitcoins. And Strategy is not stopping there. In October, it announced a major new expansion of the Bitcoin buying program it started back in August 2020. Its "21/21 Plan" calls for the company to raise $42 billion via a mix of debt sales and equity offerings, and use all of it to buy more Bitcoin. In February, for example, Strategy raised $563 million via a preferred stock offering. And on March 21, it raised another $711 million via a different preferred stock offering. Seemingly a month does not go by anymore without another new announcement from the company about how it is going all-in on the cryptocurrency. In February, for example, the company shortened its name to Strategy and declared that it was now a "Bitcoin Treasury Company." Its defining corporate mission from here on out is to find new ways to buy and hold Bitcoin. Where things get really interesting is when you consider the potential price trajectory of the crypto. One prediction, made by Cathie Wood of Ark Invest, is that Bitcoin could hit a price of $1.5 million by 2030. Right now, it is hovering below $100,000. To make her prediction happen would require a 15x move within the next five years. That type of rise might sound impossible and outlandish until you consider that Bitcoin has done it before. For example, it made a 20x gain to get from $5,000 to $100,000. And the time that was required? Just over seven years. It hit $5,000 for the first time in September 2017 and hit $100,000 for the first time in December 2024. To speed up the timeline a bit, Michael Saylor, the founder and executive chairman of Strategy, has suggested that the U.S. government commit to buying as much as 25% of the total circulating supply by 2035 for its new Strategic Bitcoin Reserve. At the same time, he is now suggesting that other companies, both big and small, commit to making the token a balance sheet asset. Most notably, in December he urged Microsoft to begin a substantial new Bitcoin buying program. So the strategy of Strategy is simple. Transform itself into a company that does nothing but buy Bitcoin. Use debt to expand your ability to buy as much of it as possible. Finally, do your best to convince everyone else to buy as much Bitcoin as they can in a bid to increase demand and keep its price moving up. If it all goes according to plan, says Saylor, Strategy will be a trillion-dollar company one day. At some point, alarm bells have probably started ringing for some readers here. Strategy is now almost completely ignoring its core enterprise software business. It's using significant debt to get as much leverage as possible. And it is completely exposed to the price movement of Bitcoin. If, for any reason, Bitcoin moves lower, or if it remains trapped within a relatively narrow trading band, that could cause enormous financial difficulties for Strategy. If its software business is no longer generating cash flow, then the company might need to start selling some Bitcoin at some point in the future in order to cover operating expenses or financing costs. As soon as the market catches a whiff of that, it could trigger a cascading effect of adverse financial consequences. It's hard to argue with Strategy's past stock performance. It has skyrocketed in value, outperforming even Nvidia over the past five years. That's an impressive feat. But can Strategy go parabolic? It all depends on the price of Bitcoin. If you're holding Strategy stock, you need to be rooting for Bitcoin to hit a price of $1 million as quickly as possible. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $295,009!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $42,000!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $523,463!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 24, 2025 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. 1 Crypto Stock That Could Go Parabolic was originally published by The Motley Fool Sign in to access your portfolio
Channel Post MEA
04-03-2025
- Business
- Channel Post MEA
MicroStrategy Rebrands itself as Strategy
MicroStrategy Inc. has rebranded itself as Strategy, creating the world's first and largest Bitcoin Treasury Company and a leading enterprise analytics provider. This brand simplification is a natural evolution of the company, reflecting its focus and broad appeal. The new logo includes a stylized 'B', signifying the company's Bitcoin strategy, and its unique position as a Bitcoin Treasury Company. The brand's primary color is now orange, representing energy, intelligence, and Bitcoin. Phong Le, President and CEO, Strategy said 'Strategy is innovating in the two most transformative technologies of the twenty-first century – bitcoin and artificial intelligence. Our new name powerfully and simply conveys the universal and global appeal of our company, and the value we bring to the strategies of our shareholders, customers, partners, and employees.' 0 0
Yahoo
23-02-2025
- Business
- Yahoo
Should You Buy MicroStrategy (Now Called Strategy) While It's Below $500?
It's been a fantastic two-year run for MicroStrategy (NASDAQ: MSTR), which is up more than 1,200% during that time period. This stock market success can primarily be attributed to its unprecedented Bitcoin (CRYPTO: BTC) buying spree, which has seen the company accumulate more than 2% of all Bitcoin currently in circulation. Not unsurprisingly, MicroStrategy's stock price has shot up over the past two years as the price of Bitcoin soared. And now MicroStrategy has decided to go all-in on Bitcoin. During a quarterly earnings call with analysts at the beginning of February, MicroStrategy announced that it is rebranding as "Strategy" and integrating the iconic Bitcoin symbol as part of its brand identity. So what exactly does that mean for investors? To answer that question, it's important to understand why MicroStrategy is rebranding. The goal, says executive chairman and founder Michael Saylor, is to show once and for all that the company is 100% committed to its Bitcoin strategy. From now on, Strategy will be a Bitcoin Treasury Company (BTC) that holds Bitcoin. Every single action that the company takes from here on out will be focused on accumulating as much Bitcoin as it can. Case in point: In late 2024, the company announced a new "21/21 Plan" that will see it accumulate as much as $42 billion in new Bitcoin over the next three years using a combination of debt and equity. This ramped-up buying strategy is fully in line with Saylor's core belief that Bitcoin is the only cryptocurrency investors should be holding these days. As he sees it, Bitcoin is on a rocket ship to a price of $13 million, and he wants Strategy to be part of that remarkable ride. From his perspective, Strategy has the potential to become a $10 trillion company. The only problem, though, is that some analysts, investors, and academics are starting to ask some very serious questions about the viability of this Bitcoin strategy. For example, Carnegie Mellon University finance professor Bryan Routledge has pointed out that there is no rational explanation for why Strategy should be valued at nearly twice the value of its Bitcoin holdings, especially when the company has been losing money for four consecutive quarters. Right now, Strategy holds 478,740 Bitcoins with a market value of $45 billion. Yet the stock market is giving Strategy a valuation of $85 billion. In part, this can be explained away by investors anticipating future gains for Strategy's Bitcoin holdings. But just keep in mind: If the price of Bitcoin does not continually go up, then the entire Bitcoin-centric business model starts to fall apart. For example, in its latest quarterly earnings call, Strategy acknowledged that it had to take an impairment loss of $1 billion on its Bitcoin holdings, and that pushed the company into a net loss of $670 million for the quarter. If this continues, and if the company continues to abandon its core software business (which was helping to generate cash), Strategy might need to dip into its Bitcoin holdings at some point to cover debt payments or operating expenses. And that could send Strategy into a downward spiral. At the very least, selling significant amounts of Bitcoin at one time could send the price of Bitcoin down, further eroding the value of Strategy's core Bitcoin holdings, thereby dragging down the value of Strategy as well. However, there is another scenario to consider. And that involves Strategy evolving into a Bitcoin bank. As some analysts see it, Strategy is simply a bridge brand to the next evolution of the company, which would focus even more heavily on financial services. Conceptually, this could be a full-service investment bank offering Bitcoin-backed (rather than dollar-backed) financial products. Does this sound improbable? Well, in late 2024, Michael Saylor floated this very same idea. He described a vision for Strategy as being a "Bitcoin bank" that could make money on its Bitcoin holdings. So, instead of just sitting on a pile of Bitcoin and waiting for its price to go up, Strategy would be able to lend this Bitcoin out to others. Of course, this would likely require regulatory approval, so keep your expectations in check. Right now, Strategy sits at a price of $323, which is approximately 32% below its all-time high closing price of $474. In theory, then, a price of $500 is within striking distance, especially given how tightly the company's valuation is tied to the price of Bitcoin. But as we've seen in the early stages of 2025, the long-anticipated Bitcoin breakout has yet to happen. In fact, Bitcoin has had a hard time hanging on to the $100,000 price level. The longer that Bitcoin struggles to find its footing, the more questions investors are going to raise about Strategy and its vast Bitcoin holdings. I think it's a better choice just to buy Bitcoin and not mess around with Strategy. There are fewer moving pieces and less downside risk if the crypto market continues to move sideways or down in 2025. Before you buy stock in Strategy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Strategy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,668!* Now, it's worth noting Stock Advisor's total average return is 942% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of February 21, 2025 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. Should You Buy MicroStrategy (Now Called Strategy) While It's Below $500? was originally published by The Motley Fool
