Latest news with #MSTR
Yahoo
21 hours ago
- Business
- Yahoo
Vanguard Is Now the Top Investor in MicroStrategy Stock. Should You Buy MSTR Too?
In a surprising turn of events, Vanguard has emerged as the largest institutional shareholder of MicroStrategy (MSTR), holding 20.5 million shares worth approximately $9.26 billion, representing 8.55% ownership of the company. This development marks a shift for the world's second-largest asset manager, which previously dismissed Bitcoin (BTCUSD) as 'an immature asset class.' The investment positions Vanguard as the top holder in MicroStrategy, the world's largest publicly listed corporate Bitcoin holder, with 601,550 Bitcoin valued at $74 billion. More News from Barchart Is Palantir Stock a Buy Above $150? Coinbase Stock Just Hit a New 52-Week High. How Much Higher Can Crypto Week Take COIN? This Bullish Catalyst for Nvidia Stock Is Coming in September Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Vanguard has previously criticized Bitcoin, with executives calling the cryptocurrency 'speculative' and warning that it could create portfolio 'havoc.' While competitors like BlackRock (BLK) and Fidelity launched spot Bitcoin ETFs in January 2024, Vanguard notably abstained from the crypto rush. The firm maintained its stance even as Bitcoin reached an all-time high of $123,000 earlier this month. Additionally, Vanguard CEO Salim Ramji recently reaffirmed that the company doesn't make bets on 'speculative assets,' such as Bitcoin. This quiet accumulation of MicroStrategy shares suggests Vanguard may be gaining indirect Bitcoin exposure while maintaining its public skepticism toward direct cryptocurrency investments, highlighting the complex dynamics between traditional asset managers and digital assets. Is MSTR Stock a Good Buy Right Now? Strategy, formerly known as MicroStrategy, has become the poster child for Bitcoin treasury companies. Over the last five years, MSTR stock has surged more than 3,700%, outpacing the nearly 1,200% returns of Bitcoin. This remarkable outperformance stems from Strategy's aggressive Bitcoin accumulation strategy, which began in August 2020. Strategy now holds more than 600,000 BTC on its balance sheet, making it the world's largest corporate Bitcoin holder by a wide margin. Executive Chairman Michael Saylor has transformed the software company into what he calls 'the world's first Bitcoin treasury company.' Strategy's success has sparked a wave of imitators. Even failing businesses are pivoting to Bitcoin treasury strategies, hoping to revitalize their stock prices through exposure to cryptocurrency. However, this approach carries significant risks. For instance, Strategy employs debt and leverage to acquire Bitcoin, creating what some analysts describe as an ultra-leveraged Bitcoin fund. This approach only works when Bitcoin prices rise, interest rates remain manageable, and market sentiment stays positive. Is MSTR Stock Overvalued Right Now? Out of the 13 analysts covering MSTR stock, 11 recommend 'Strong Buy,' one recommends 'Moderate Buy,' and one recommends 'Strong Sell.' The average MSTR stock price target is $543.62, 27% above the current price. With Bitcoin currently priced near $120,000 acquiring meaningful positions becomes increasingly expensive, which will create a cycle of dilutive stock offerings. While Strategy has delivered exceptional returns, investors should consider whether direct Bitcoin exposure through spot ETFs might offer similar upside with fewer operational risks and complications. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
a day ago
- Business
- Yahoo
Is it Time to Tap MicroStrategy ETFs Amid Bitcoin Surge?
With Bitcoin prices soaring to new highs, TD Cowen analyst Lance Vitanza has recently increased his price target for MicroStrategy shares to $680, up from the previous target of $590, as quoted on CNBC. Several companies have attempted to replicate MicroStrategy's (also known as Strategy) business model, but Vitanza emphasized that none can rival the company's cost of capital advantage. Strategy has uniquely leveraged a diverse array of securities to raise funds for acquiring Bitcoin, giving it a strategic edge in the market. MicroStrategy – the software and bitcoin-treasury company – said it now owns more than 600,000 bitcoins, valued in excess of $70 billion at current prices. It disclosed that it has resumed buying Bitcoin, as prices surged further into record territory. Bitcoin Momentum Fuels Optimism TD Cowen's bullish outlook is driven by expectations of continued Bitcoin price appreciation and MicroStrategy's aggressive pace of Bitcoin accumulation. On Monday, Bitcoin hit a new all-time high of $123,000, fueled by strong inflows into Bitcoin ETFs. Although it has since dipped slightly to $120,437.06, the overall trend remains upward. MicroStrategy Stock Performance MicroStrategy shares have rallied about 54% year to date, reflecting growing investor confidence in the company's crypto-centric strategy. Even before TD Cowen boosted its target price for MicroStrategy, the average price target for MicroStrategy was $534.77 (offered by 13 analysts). The forecasts ranged from a low of $175.00 to a high of $650.00. The average price target represented a 23.05% increase from the last closing price of $434.58, recorded on July 11, 2025. The stock, however, surged 3.1% on July 15, 2025. ETFs in Focus Against this backdrop, below, we have highlighted a few winning MicroStrategy-based exchange-traded funds (ETFs) that can be tapped now. T-Rex 2X Long MSTR Daily Target ETF MSTU The T-Rex 2X Long MSTR Daily Target ETF seeks daily investment results, before fees and expenses, of 200% of the daily performance of MSTR. The fund charges 105 bps in fees. Grayscale Bitcoin Adopters ETF BCOR The underlying Indxx Bitcoin Adopters Index consists of U.S. and non-U.S. equity securities of companies that have been adopting Bitcoin as an asset for corporate treasury management. The fund charges 59 bps in fees. MSTR stock takes 21.34% of the fund. First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT The First Trust SkyBridge Crypto Industry and Digital Economy ETF seeks to provide investors with capital appreciation. The fund charges 85 bps in fees. MSTR stock takes 20.49% of the fund. Bitwise Bitcoin Standard Corporations ETF OWNB The underlying Bitwise Bitcoin Standard Corporations Index provides exposure to the performance of corporations that have adopted the Bitcoin standard. Such corporations are those that hold Bitcoin as a corporate treasury asset. The fund charges 85 bps in fees. MSTR stock takes 19.19% of the fund. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
2 days ago
- Business
- Yahoo
Is Investing in a Bitcoin Treasury Company a Millionaire-Maker Strategy?
Key Points Bitcoin treasury companies such as Strategy have shown the ability to outperform Bitcoin for extended periods of time. A strategy of using debt and leverage to buy Bitcoin only works when its price is rising and the cost of capital is relatively low. Over the long haul, investing in the crypto directly is less risky than investing in a Bitcoin treasury company. 10 stocks we like better than Strategy › New Bitcoin (CRYPTO: BTC) treasury companies are being launched left and right. They are all trying to emulate the success of Strategy (NASDAQ: MSTR), the company formerly known as MicroStrategy, which now has an impressive track record of outperforming Bitcoin. Case in point: Strategy stock is up 50% this year, while Bitcoin is up 30%. Imagine being able to capture that level of outperformance year after year. In theory, investing in a Bitcoin treasury company such as Strategy will speed up your timeline to becoming a millionaire. But is that really the case? The track record of Strategy To answer that question, it's important to examine the track record of Strategy to understand just how big the performance gap has been over the past few years. The numbers really are incredible. Here's a side-by-side comparison of Strategy and Bitcoin, starting from August 2020. That's when Strategy started its Bitcoin buying spree. At a glance, it becomes obvious that sometime around January 2024, investing in Strategy became a better buy than investing in Bitcoin. Over the past five years, Strategy is up 3,422%. In comparison, Bitcoin is "only" up 940%. So you can start to see why some people are now referring to Strategy as a potential millionaire maker. At the same time, multimillionaires are now launching their own Bitcoin treasury companies in the hope of becoming billionaires. The secret to outperforming Bitcoin By now, you're probably wondering: "OK, so what's the catch?" This just seems too easy. Maybe money really does grow on trees. Here's the catch: Companies like Strategy are using a mix of debt and leverage to outperform Bitcoin. Some have referred to them as ultra-leveraged Bitcoin funds. This strategy only works when the crypto's price is rising, the cost of capital is relatively cheap, and market sentiment is positive. That describes the situation we're in now. In November, the price of Bitcoin was $69,000. Today, it's $122,000. Interest rates are no longer near zero, but they are still relatively low from a historical perspective, so the rates that companies must pay on their debt is also relatively low. And market sentiment, emboldened by all the pro-crypto moves of the Trump administration, is also positive right now. Some even think that the digital coin is about to go on an epic bull-market run that will take it to $200,000 by the end of the year. But what if all this changes? The ability to raise new money to buy more Bitcoin is only possible if its price continues to move up. Moreover, if financing costs rise, then that imposes an even greater burden on these Bitcoin treasury companies to keep the flywheel going. In a worst-case scenario, they might need to sell some of their tokens to make scheduled payments. A Bitcoin treasury company bubble? It's getting to the point where CNBC has warned this could be a bubble in the making: "The rush into Bitcoin treasuries -- inflated by cheap capital, yield promises, and brand name endorsements -- is starting to resemble a bubble." This comes after an unprecedented amount of capital has been raised to buy Bitcoin this year. Nearly every week, it seems, some new company is being launched out of nowhere and announcing a plan to buy hundreds of millions of dollars' worth of the crypto. It's becoming hard to keep track of how many companies are now transforming into Bitcoin treasuries. There are pure plays on this idea, such as Strategy, that do nothing but buy and hold Bitcoin. There are hybrid treasury companies, which are now amassing huge amounts of it to complement other business operations. And then there are the treasury companies that claim to have plans to do things with all of that cryptocurrency on their balance sheet, such as creating new Bitcoin lending products for consumers. What has me concerned right now is that some publicly traded companies with failing business models are also embracing the digital coin. They are obviously facing pressure from shareholders to turn things around, so they are transforming into hybrid Bitcoin treasury companies. As long as the price continues to go up, then this makes sense from a shareholder value perspective. However, some analysts have compared this new mania to the dot-com mania. Should you buy Bitcoin or a Bitcoin treasury company? So buyer beware. If you are going to invest in a Bitcoin treasury company, make sure you understand the risks involved. The best companies are those that have a significant cash cushion and as little debt as possible, in case the crypto's price heads south. Remember: These companies typically have no core operating business to produce cash flow. They depend on continually tapping the capital markets for more money, to support their buying habit. In the short term, I can see how an investment in one of these new treasury companies could speed up the path to becoming a millionaire. But over the medium to long term, I still think holding Bitcoin directly is the ultimate millionaire-maker strategy. There are fewer variables to worry about, and less that could possibly go wrong. Do the experts think Strategy is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Strategy make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 179% for the S&P — that is beating the market by 881.02%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. Is Investing in a Bitcoin Treasury Company a Millionaire-Maker Strategy? was originally published by The Motley Fool 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
2 days ago
- Business
- Yahoo
Strategy Hits Record $128.5B Market Cap as Bitcoin Buying Prompts Equity Sales
Strategy (MSTR), the bitcoin (BTC)-buying software company led by Michael Saylor, posted a record market capitalization as it engages in a multiyear transformation funded largely through aggressive equity issuance. The $128.5 billion market cap makes the Tysons Corner, Virginia-based company the 84th largest publicly traded company in the U.S. This rise from a sub-$2 billion market cap in five years underscores how the firm has redefined itself as the most prominent corporate bitcoin holder in public markets. Since 2020, the number of shares outstanding has almost tripled to 281.9 million, reflecting not only organic growth, but also a 10-for-1 stock split in August 2024 and the extensive use of at-the-market (ATM) equity programs. The count includes all Class A and Class B common shares, as well as stock sold via ATM offerings and those pending issuance from exercised options, vested restricted stock units (RSUs) and convertible note conversions. In October, Strategy announced a three-year $42 billion capital-raising plan comprising both equity and fixed-income instruments. That followed a $21 billion fundraise in the third quarter. The capital raised was primarily used to purchase bitcoin, enabling the company to build a treasury of 601,550 BTC, currently worth over $70 billion. The strategy has turned MSTR, in effect, into a leveraged, corporate bitcoin vehicle with equity-like features. The common stock trades at $455.90, some 15% below its November 2024 high. Investors continue to support the company's strategic vision, drawn by its role as a liquid, high-beta proxy for bitcoin exposure. The company's Assumed Diluted Shares Outstanding stands at 315.1 million, incorporating all possible conversions from convertible debt, preferred stock, options, and performance awards.
Yahoo
4 days ago
- Business
- Yahoo
Strategy's Convertible Bond Prices Surge as Stock Advances Back Toward Record High
Strategy's (MSTR) aggressive bitcoin BTC acquisition strategy has dramatically boosted the value of its convertible debt. With bitcoin steady near its record price and the company's shares rebounding toward $450, five of the six bonds outstanding are deep in the money, meaning the stock price exceeds their conversion prices. Only the 2029 note, with a high $672.40 conversion price, remains out of reach. The Tysons Corner, Virginia-based company issued convertible notes totaling $8.2 billion in notional principal with ultra-low average coupons of just 0.421%. The bonds, which mature between 2028 and 2032, carry a set price based on MSTR and BTC levels at the time of issues at which the debt can turn into the common stock. MSTR stock has rebounded from as low as $235 three months ago and is within sight of late last year's $543 record. The rally has pushed the bonds' market value to $13.4 billion, roughly $5.2 billion above their notional value. The premium reflects how much investors are willing to pay in secondary markets, driven by the bonds' potential to convert into valuable equity. Of late, however, Strategy has paused issuing new convertible notes. That may be due to more cautious sentiment as reflected in the options market. As of July 15, MSTR's implied volatility sits at 53.1%, well below past highs above 200%. Implied volatility is an indication of how much the options traders believes the stock will move in the future based on their market positioning. Open interest remains healthy at over 2.4 million contracts, but both the open interest put-call ratio (0.93) and the volume put-call ratio (0.62) indicate neutral sentiment, suggesting traders are not aggressively betting on a major surge in the stock. A put is a cautious position that offers protection against price declines in the underlying asset while a call is a bullish instrument that allows traders to profit when the price rises. Additionally, trading volume is just 20% of its 30-day average, hinting at reduced speculative interest. This muted options activity implies that while MSTR's price is high enough to put five of the six convertible bonds deep in the money, there may not be the same frothy market enthusiasm that allowed the company to issue convertibles at ultra-low coupons and favorable terms. Investors might demand higher yields or lower conversion prices for any new issuance, which could dilute existing shareholders sooner.