Latest news with #BrettKnoblauch
Yahoo
02-08-2025
- Business
- Yahoo
MSTR and SMLR: Brett Knoblauch Picks the Best Bitcoin Treasury Stocks to Buy
Cryptocurrency has come a long way since Bitcoin's debut in 2009. Over the past decade and a half, the space has captured global attention, dominated headlines, and gone through wild cycles of boom and bust. Today, thousands of cryptocurrencies circulate on the market, and while global regulation is still taking shape, under the new administration the U.S. framework is advancing rapidly in a distinctly positive direction. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. For investors looking to cut through the noise, one compelling option lies in Bitcoin treasuries. These are public companies that hold Bitcoin as a strategic asset, aiming to benefit from its long-term value appreciation. Covering the sector for Cantor, analyst Brett Knoblauch gives us the background and points the way toward finding sound investments. 'What makes a good Bitcoin treasury company? A successful Bitcoin treasury company needs access to capital. Without capital, they simply cannot acquire Bitcoin. The amount of capital a company has access to in this space is largely driven by trading liquidity. For shares to have a relatively high amount of volume, we believe they need to have a management team that carries weight in the crypto ecosystem,' Knoblauch opined. 'However, not all Bitcoin treasury companies are created equal, and we believe some offer better risk/reward than others.' The Cantor digital expert goes on to put his background research to work – and he's tagged Strategy (NASDAQ:MSTR) and Semler Scientific (NASDAQ:SMLR) as two of the best bitcoin treasury stocks to buy right now. Let's give them a closer look and find out what makes these stocks so compelling. Strategy The first stock on our list is MSTR. Formerly known as MicroStrategy, the company rebranded itself earlier this year as Strategy, and its stylized 'B' logo points to the company's core work. Strategy is a Bitcoin treasury, but more importantly, it was the first Bitcoin treasury. The company has been buying up Bitcoin since 2020, and today its holdings total 607,770. At current prices, that digital asset is worth approximately $72 billion. Strategy is the world's largest corporate holder of Bitcoin. As a Bitcoin treasury, some of Strategy's vital stats are a bit different than those of most other public companies. A look at the last quarterly report, covering 1Q25, shows this. Strategy reported strong results on several important KPIs related to its Bitcoin business. These include the 'BTC Yield,' which was listed as 13.7%; the 'BTC Gain' of 61,497; and the 'BTC $ Gain' of $5.8 billion. These performance indicators were given 'year-to-date,' as of April 28, and show that Strategy's bitcoin treasury business was performing well in the first four months of this year. In addition to its expanding role as a Bitcoin treasury, Strategy also maintains a legacy software business – and boasts that it is the world's largest 'independent, publicly traded business intelligence company.' The company provides cloud-native business intelligence software solutions, along with AI-powered, enterprise-scale data analytics services, for subscription customers. The company generated $111 million in revenue from its software business during the first quarter, a total that was down 3.6% year-over-year. Within that figure, subscription revenue rose 61.6% year-over-year, to reach $37.1 million. Strategy will announce Q2 earnings today (July 31) after the close. For Cantor's Knoblauch, the key point here is Strategy's role as the largest Bitcoin treasury. The analyst notes that this company was the first into that niche, and had taken a large lead – which bodes well for Strategy's future. Knoblauch writes, 'MSTR created the segment, and it has a Bitcoin stack that is unlikely to ever be matched by another entity. Assuming MSTR acquires ~$20bn worth of BTC a year, this puts MSTR on track to reach 1m BTC in just over three years, and that assumes BTC compounds at a 30% CAGR. The sheer size of MSTR's BTC stack combined with capital markets innovation makes MSTR a must-own name in this space, in our view. If BTC is going to $1m, which we think is highly likely at some point in the future, MSTR could be one of the largest companies in the world.' These comments back up the analyst's selection of MSTR as his top Bitcoin treasury pick, and his Overweight (i.e., Buy) rating on MSTR. The analyst's $680 price target indicates potential for a 72% upside in the year ahead. (To watch Knoblauch's track record, click here) Strategy has earned a Strong Buy consensus rating from the Street's analysts, based on 12 recent reviews that feature a lopsided split of 11 Buys to 1 Sell. The stock is priced at $395.04, and its $547.75 average price target implies a one-year upside potential of 39%. (See MSTR stock forecast) Semler Scientific The next stock on our list, Semler Scientific, has an interesting similarity to Strategy – like the Bitcoin treasury leader, Semler Scientific got its start in a different field and came to the Bitcoin treasury niche later on. Semler started out in the medical sciences field, as a developer and provider of innovative medical products and services. On this side, the company's chief product is QuantaFlo, an FDA-cleared point-of-care product used in the early diagnosis of vascular disease. The device has been found helpful in diagnosing asymptomatic patients. In May 2024, however, Semler started to chart a new path by purchasing Bitcoin to hold as a digital asset. Since then, the company has amassed 5,021 bitcoins in its holdings, which are worth approximately $595 million. This makes Semler the 15th largest Bitcoin treasury on the global scene and the fourth largest in the US. Semler has an aggressive Bitcoin purchase strategy and aims to hold at least 10,000 bitcoins by the end of this year – and to acquire 105,000 by the end of 2027. The company's purchase plan is based on a combination of equity, debt financing, and operational cash flows. Along with its aggressive purchase plan, Semler is also packing its Board of Directors with Bitcoin experts. The latest addition, announced this past June, is bitcoin market researcher Joe Burnett. Burnett has a reputation as an unabashed booster of Bitcoin as an advanced digital asset. Turning to the company's last earnings report for 1Q25 and its bitcoin KPIs, we find that Semler's BTC yield through May 12 this year came to 22.2%; its BTC gain for the same period was 510.3; and its BTC $ gain, also through May 12 this year, came to $52 million. Semler reported $8.8 million in revenue for Q1, down 44% from the prior-year period. We should note that in 1Q24, Semler's primary business was still in the medical field; its switch to a Bitcoin treasury-centered strategy came during the second quarter of last year. Knoblauch, in his write-up of Semler, is impressed by the company's ability to swiftly embrace this new field and to quickly amass a significant bitcoin holding. He says of the company, 'SMLR was the second company in the US to pursue a Bitcoin treasury strategy. Unlike MSTR, whose core business is to raise capital and buy Bitcoin, SMLR was using excess cash on its balance sheet to acquire Bitcoin. More recently, it began raising money to buy Bitcoin… SMLR has increased its focus on Bitcoin, as it has recently hired a new Chief Bitcoin Officer (Joe Burnett) and added Natalie Brunell, a top-rated Bitcoin podcast host, to its BoD. The company is targeting 105k Bitcoin by the end of 2027E, and given this target, SMLR being one of the least expensive Bitcoin treasury names, we think risk/reward is attractive.' Knoblauch rates SMLR as Overweight (i.e., Buy), with a $61 price target that suggests the shares will gain 70% over the next 12 months. All 3 of the recent reviews on SMLR are positive, giving the stock a unanimous Strong Buy consensus rating. The stock is currently trading for $35.91, and its average price target of $85.67 implies an upside potential of a hefty 138.5% for the year ahead. (See SMLR stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue
Business Insider
02-08-2025
- Business
- Business Insider
Strategy Stock (MSTR) Remains a ‘Top Pick' in Bitcoin Space, Says Top Analyst after Q2 Beat
Strategy (MSTR), the largest corporate owner of Bitcoin in the world, received a boost from Cantor Fitzgerald's price target hike after the company posted strong Q2 earnings. Revenue came in at $114.5 million, just above expectations, but the highlight was its EPS of $32.60, well above the expected loss of $0.10. The jump was mainly due to a new accounting rule that lets MicroStrategy include unrealized Bitcoin gains in its income. By the end of Q2, it held 628,791 Bitcoin, the largest corporate stash in the world. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Following the results, Top analyst Brett Knoblauch of Cantor Fitzgerald lifted the price target on MSTR stock to $697, up from $680, while reiterating a Buy rating. Why Cantor Sees MSTR Leading the Bitcoin Race Knoblauch called MicroStrategy his 'top pick' among companies holding Bitcoin. He pointed to the company's massive Bitcoin position of 628,791 tokens, which he said was unmatched. He believed no other firm was likely to catch up, giving MicroStrategy a strong edge as demand for Bitcoin exposure continued to grow. He also pointed to MicroStrategy's strong access to capital as a key strength. He noted that the company could raise funds through equity, options, convertible notes, and preferred shares. This gave it more ways to expand its Bitcoin holdings without hurting current shareholders. Knoblauch said he expected the stock to continue trading at a premium to its net asset value, which stood at around 1.8 times, due to its large scale and smart strategy. To add to the context, late last month, MSTR issued a new preferred stock called 'Stretch,' offering a 9% yearly payout and no maturity date. The initial offering was for $500 million, but strong demand pushed it up to $2.8 billion. Is MicroStrategy a Good Stock to Buy? Overall, Wall Street has a Strong Buy consensus rating on Strategy (formerly known as MicroStrategy) stock based on 11 Buys versus one Sell recommendation. The average 12-month MSTR price target is $554.42, implying 45.15% upside potential.
Yahoo
31-07-2025
- Business
- Yahoo
Robinhood Sheds Its Meme Stock Skin, Emerges As Full-Fledged Fintech Player
Robinhood Markets, Inc. (NASDAQ:HOOD) shares moved lower on Thursday, despite delivering stronger-than-expected second-quarter results. The stock and cryptocurrency trading platform reported second-quarter revenue of $989.0 million on Wednesday, up 45% year-over-year. The revenue beat a Street consensus estimate of $898.95 million, according to data from Benzinga Pro. Several analysts have weighed in on the stock with updated price forecasts. JP Morgan's Kenneth B. Worthington reiterated a Neutral rating while raising his price forecast from $98 to $ John Todaro maintained a Buy rating and significantly lifted his price forecast from $71 to $120. Meanwhile, Cantor's Brett Knoblauch reaffirmed an Overweight rating and increased his price forecast from $100 to $118. JP Morgan's Take Worthington noted that while Robinhood delivered strong top-line results and kept operating expenses disciplined at $550 million in second quarter of 2025, the quarter also reflected the platform's growing maturity, with multiple products and business lines performing well. The analyst highlighted Robinhood's progress in moving beyond its earlier dependence on meme-stock trading and acknowledged management's solid execution, but pointed out that the platform still lags larger rivals in product breadth and scale. Additionally, he expressed caution regarding the long-term profitability of Robinhood's smaller-sized accounts. The analyst raised the fiscal year 2025 adjusted earnings per share forecast from $1.31 to $1.53. Cantor's Perspective Knoblauch highlighted that the firm's third quarter is off to a strong start, with July net deposits surpassing $6 billion and equity and options volumes expected to hit record highs amid renewed interest in meme stocks. The analyst noted that continued product innovation is driving user growth and expanding Robinhood's share of customer wallets, a trend expected to strengthen with the upcoming launch of Robinhood Banking in the fall. While shares are already up 185% year-to-date compared to the S&P 500's 8%, Knoblauch acknowledged that some investors may feel they missed the opportunity to buy in. Knoblauch projected a 6% increase in crypto volume for 2026, assuming a like-for-like comparison with Bitstamp's 2025 figures, though he expects a down year based on typical crypto market cycles. Needham's Viewpoint Todaro stated that Robinhood is performing strongly across its business, prompting an upward revision in estimates and price target. The analyst expressed increased confidence in the company's ability to drive operating leverage, raising the projected 2026 EBITDA margin to approximately 65%. Todaro also raised the forecast multiple, citing reduced regulatory risks around Robinhood's crypto offerings, including staking, tokenized assets, and prediction markets. The analyst raised the fiscal year 2025 revenue estimate to $4.342 billion from $3.941 billion. Price Action: HOOD shares are trading lower by 1.68% to $104.32 at last check Thursday. Read Next:Image via Shutterstock Latest Ratings for HOOD Date Firm Action From To Feb 2022 Deutsche Bank Maintains Hold Jan 2022 Barclays Maintains Equal-Weight Jan 2022 Rosenblatt Maintains Buy View More Analyst Ratings for HOOD View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Robinhood Sheds Its Meme Stock Skin, Emerges As Full-Fledged Fintech Player originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
Strategy (MSTR) Q2 Earnings Preview: What to Expect From Upcoming Report
July 30 - Strategy (NASDAQ:MSTR) plans to release Q2 2025 results after markets close on July 31, and investors follow closely given its large Bitcoin holdings. Analysts expect a per?share loss of $0.10, narrower than the $0.57 hit a year earlier. Revenue should edge up 1.9% to about $113.5 million, reflecting both its crypto treasury operations and enterprise analytics business. Warning! GuruFocus has detected 9 Warning Signs with MSTR. In a recent preferred?stock deal, the company raised $2.5 billion and used the funds to buy 21,021 BTC, bringing total reserves to 628,791 coins. Recently, Cantor Fitzgerald's Brett Knoblauch raised his price target to $680 and reaffirmed a Buy rating, pointing to the firm's unique market position. He estimates Strategy could reach 1 million BTC in just over three years if it keeps up current purchase levels. Based on the one year price targets offered by 13 analysts, the average target price for Strategy is $495.38 with a high estimate of $680.00 and a low estimate of $200.00. The average target implies a upside of +25.52% from the current price of $394.66. This article first appeared on GuruFocus.
Yahoo
28-07-2025
- Business
- Yahoo
Cantor outlines how to navigate the emerging Bitcoin treasury sector
- The amount of Bitcoin owned by companies specializing in accruing more of the cryptocurrency is anticipated to rise, according to analysts at Cantor. Many firms have recently embarked on Bitcoin buying sprees, as part of a bid to capitalize on the digital coin's soaring value and hopes for a softer regulatory backdrop. In a note, the analysts led by Brett Knoblauch said these so-called "Bitcoin treasury companies," such as MicroStrategy (NASDAQ:MSTR), Marathon Digital Holdings (NASDAQ:MARA), and CleanSpark (NASDAQ:CLSK), own or have raised capital acquire roughly 904,000 of the digital tokens. "[W]e expect that number to only continue to increase given the capital market advantages these companies have," they argued. They added that "if feels like a new Bitcoin treasury play is emerging every day," fueled by a range of factors, including retail investor enthusiasm, the relative ease of buying stocks compared to cryptocurrencies, and fewer punitive tax rules equities than on digital assets. "Financial engineering" is also seen allowing Bitcoin treasury companies to continuously grow their Bitcoin positions in the future, the analysts predicted. The trend comes as firms are trying to emulate the success of Strategy, the software group formerly known as MicroStrategy, which began building up its Bitcoin stockpile in 2020 and now owns more than $63 billion worth of the world's largest cryptocurrency. Investors have seemingly celebrated the move, with Strategy's stock up by 3,000% since 2020, mirroring a surge in Bitcoin to recent all-time highs. Last week, twenty new public firms announced crypto purchases, the Cantor analysts noted. But "not all Bitcoin treasury companies are created equal" and "some offer better risk/reward than others," they flagged. Perhaps most importantly, these companies need to be able to rake in capital, as this will help facilitate further Bitcoin purchases, the analysts said. "The amount of capital a company has access to in this space is largely driven by trading liquidity. For shares to have a relatively high amount of volume, we believe they need to have a management team that carries weight in the crypto ecosystem," they argued. Buying Bitcoin is crucial for these companies, as their ability to acquire more of the asset will likely determine their long-term performance, the analysts said. "Thus, if we look at multiple of Bitcoin net asset value, a company on a higher multiple today objectively screens more expensive, but that could be entirely justified by the market's perception that it can sustain continued Bitcoin acquisitions over the long run," they wrote. Against this backdrop, the analysts named Strategy as their top pick among Bitcoin treasury names, and initiated coverage of new players Semler Scientific and Fold Holdings with "overweight" ratings. Related articles Cantor outlines how to navigate the emerging Bitcoin treasury sector Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names After soaring 149%, this stock is back in our AI's favor - & already +25% in July Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
