Latest news with #MicroStrategy
Yahoo
14 hours ago
- Business
- Yahoo
Vanguard Slams Bitcoin—But Now Has Billions Tied To It Thanks To Index Exposure
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. In a twist of fate, Vanguard has become the largest shareholder of the most established Bitcoin equity play. The $10 trillion asset manager has famously refused to touch Bitcoin and other cryptocurrencies while its peers have jumped headfirst in the past year. Now Vanguard is the largest shareholder in MicroStrategy (NASDAQ:MSTR), a firm whose value proposition is that it is the most established Bitcoin proxy in the stock market, Bloomberg reported on Monday. Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . Vanguard owns more than 20 million shares of all of MicroStrategy's outstanding class A shares, worth over $9 billion, the report said. Bloomberg said that the firm likely surpassed Capital Group in Q4 2024 to claim the top spot among the firm's shareholders. In comparison, MicroStrategy Chair Michael Saylor owns just under 20 million shares, according to an April company filing. The disconnect between Vanguard's professed cryptocurrency stance and its financial holdings primarily comes from its passive index fund strategies through funds like the Vanguard Total Stock Market Index (NASDAQ:VITSX), Vanguard Extended Market Index (NASDAQ:VIEIX) and the Vanguard Growth Index Fund ETF (NYSE:VUG). But Vanguard also has exposure to MicroStrategy in some of its actively managed funds. Still, the firm maintains that this is not the result of conviction but the fact that those funds are comprised of stocks chosen by mathematical models. Trending: New to crypto? on Coinbase. 'God has a sense of humor,' Bloomberg Senior ETF analyst Eric Balchunas told Bloomberg. 'Vanguard chose this life. When you have an index fund, you have to own all the stocks, for better or worse, and that includes stocks that you may not like or approve of personally.' NovaDius Wealth Management President Nate Geraci said Tuesday on X, 'if you don't see the irony here, I don't know what to tell you.' Meanwhile, VanEck Head of Digital Assets Research Matthew Sigel said, 'Indexing into $9B of what you openly mock isn't strategy. It's institutional dementia.' The views come as Vanguard now already offers its customers indirect cryptocurrency exposure through its funds, but refuses to offer customers access to products like Bitcoin ETFs on its brokerage platform."What Vanguard is missing (*huge* miss IMO)... Is there are tons of investors who love Vanguard's low cost approach to stock & bond investing AND they want to own some btc & crypto,' Geraci said. 'Vanguard is essentially making a *market call* on btc/crypto. And alienating a lot of investors.' While Vanguard struggles to fight off the cryptocurrency wave, competitors like BlackRock (NYSE:BLK) and Fidelity are divvying market share amid significant demand. For example, BlackRock's iShares Bitcoin Trust ETF (NASDAQ:IBIT) has become the fastest ETF to hit $80 billion in assets under management. Also, IBIT now generates more revenue for BlackRock than its product tracking the S&P 500. Vanguard's inability to avoid offering cryptocurrency exposure to customers despite its views on the asset class highlights how intertwined the asset class now is with traditional finance. Depending on who you ask, that can be a sign of progress or a looming financial disaster. Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's , starting today. Image: Shutterstock This article Vanguard Slams Bitcoin—But Now Has Billions Tied To It Thanks To Index Exposure originally appeared on Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Forbes
a day ago
- Business
- Forbes
From Bitcoin To Ethereum: The Rise Of Crypto Treasury Strategies
A New Era for Crypto Treasury Strategies More and more companies are now raising cash specifically to implement crypto treasury strategies—allocating funds to buy bitcoin and other cryptocurrencies. MicroStrategy pioneered this approach at scale, and its success has inspired a wave of corporate imitators worldwide. MicroStrategy's Bold Bet on Bitcoin MicroStrategy began buying bitcoin in August 2020. As of July 18, 2025, it holds about 601,550 bitcoins, valued at over $70 billion at current prices. The company paid an average of $71,268 per coin, totaling $42.87 billion in investment. With bitcoin trading near $120,000, MicroStrategy's bitcoin position has gained approximately 68%. Its stock has done even better. Since January 2025, shares are up 46%, beating bitcoin's 26% gain over the same period. Since launching its bitcoin strategy in 2020, MicroStrategy stock has surged over 3,000%. The Copycat Effect in Crypto Treasury Strategies MicroStrategy's performance has turned heads. Japan's Metaplanet is one standout follower. The company says holding bitcoin through its stock offers tax advantages under Japanese law. Since April 2024, Metaplanet has accumulated over 16,000 bitcoin, and its stock price has jumped over 4,000%. 'One of the strategic advantages... is the more favorable tax treatment of shareholders who seek exposure to bitcoin through its stock versus the punitive tax treatment of those who own bitcoin directly.' – Benchmark Equity Research, 11 July 2025 Not all imitators have fared as well. GameStop entered the market in May 2025 following board approval in March. After raising $2.25 billion, likely for bitcoin purchases, its stock has remained volatile. So far, companies that moved early and stayed focused have delivered the strongest returns. Ethereum Enters the Crypto Treasury Spotlight While bitcoin led the way, Ethereum is now gaining ground in corporate treasuries. In June 2025, SharpLink Gaming (SBET) raised $425 million in a deal led by Consensys and named Ethereum co-founder Joseph Lubin as chairman. The company said it would use nearly all the cash to buy ether, Ethereum's native token. SBET shares jumped from $3 to nearly $79, and by July 18, traded at $29—still nearly 900% higher than before the announcement. Another example is BitMine Immersion Technologies. In May, crypto bull Tom Lee joined the board, and Peter Thiel acquired a 9.1% stake. BitMine revealed that about 40–50% of its treasury is now in ether. The stock soared from $3 to $135, and by July 18, closed at $42.35—a 1,300% gain from pre-announcement levels. A list of Ethereum treasury companies: A list of Ethereum treasury companies Beyond Bitcoin: Expanding Crypto Treasury Strategies The trend is expanding beyond BTC and ETH. SRM Entertainment, now Tron Inc., has gone all-in on TRX. Others have adopted BNB, Hyperliquid, and even Litecoin as reserve assets. In one dramatic case, YHC Corporation became a media sensation after Robert Leshner (founder of Compound) announced plans to acquire it and turn it into a crypto treasury company—then backed out due to lawsuits over the control issues. The stock whiplashed, highlighting how speculative this sector has become. With so many companies jumping into crypto, skepticism is growing. 'We're seeing companies with no real crypto ties suddenly pivot to these strategies just to pump their stock. It feels like a bubble.' – Anonymous fund manager, Bloomberg Markets, July 2025 Risks Facing Crypto Treasury Strategies Despite big returns, the risks are real. Critics argue that many crypto treasury strategies depend on a fragile loop: raise money, buy crypto, drive up share price, then raise more. Prominent short-seller Jim Chanos has been one of the harshest voices. He warns that MicroStrategy trades well above the value of its bitcoin holdings—and that its complex financing structure adds risk. 'MicroStrategy's model is simple: borrow cheap, buy bitcoin, watch it rise, sell more stock at a premium, and repeat,' he said. 'But if bitcoin falls or debt costs rise, the whole cycle could break.' He compares the current trend to the SPAC bubble of 2021—where hype fueled overvalued companies that eventually collapsed. Peter Schiff, Chief Economist & Global Strategist at Europac. Conclusion: The Future of Crypto Treasury Strategies Crypto treasury strategies are changing how companies manage their cash. Early adopters have seen massive gains, but risks around volatility, debt, and euphoria are growing. Whether this marks a true financial revolution or just another speculative bubble remains to be seen—but for now, crypto treasury strategies are clearly rewriting the corporate playbook.
Yahoo
2 days ago
- Business
- Yahoo
Strategy Incorporated (MSTR): Jim Cramer Shares Rather Cryptic Take About Firm
We recently published .Strategy Incorporated (NASDAQ:MSTR) is one of the stocks Jim Cramer recently discussed. Strategy Incorporated (NASDAQ:MSTR) is a firm whose stock is synonymous with Bitcoin price movements. The firm holds more than $60 billion in Bitcoin. As a result, Strategy Incorporated (NASDAQ:MSTR)'s shares have gained 51% year-to-date due to bullishness in the cryptocurrency market and overall positive sentiment surrounding stablecoin legislation. In his previous remarks about the firm, Cramer commented that other companies love the firm because it buys crypto often with borrowed money. His recent remarks were rather cryptic: '[On Cowen going to $680 and their Bitcoin bull case being 155k by December] Oh I know, I mean someone came to me, and said, hey Jim, we give you a lot of money, would you be the guy who would be the figurehead for our business about, you know one of the coins. I said no, first of all I'm under contract, I was kind of like Jamie [Jamie Dimon JPM CEO], I'm kind of like lukewarm on that. I was like I have a contract and I like my job. And the person came up with something interesting, what does that have to do with it?' A software engineer wearing a headset, collaborating with a remote team on a project. Previously, Cramer discussed Strategy Incorporated (NASDAQ:MSTR)'s Bitcoin buying strategy: 'They love Mister, that's what we used to call it, MSTR, now, MicroStrategy, now Strategy. It fascinates this cohort because it's a vehicle that buys crypto endlessly, often with borrowed money. Now, a lot of people wish they were MicroStrategy doing the same thing.' While we acknowledge the potential of MSTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
2 days 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
