Latest news with #T-Rex2XLongMSTRDailyTargetETF
Yahoo
5 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
Arabian Post
28-05-2025
- Business
- Arabian Post
Strategy's Bitcoin Bet Outpaces All Crypto ETFs in 2025
Strategy Inc., formerly known as MicroStrategy, has emerged as the top-performing crypto-linked equity in 2025, surpassing the returns of all 74 cryptocurrency-related exchange-traded funds tracked globally. The company's aggressive accumulation of Bitcoin has propelled its stock to outperform even the most leveraged crypto ETFs, reinforcing its position as the largest corporate holder of the digital asset. As of May 25, Strategy holds approximately 580,250 Bitcoins, acquired at an average price of $69,979 per token, amounting to a total investment of around $40.61 billion. This latest acquisition of 4,020 Bitcoins, costing $427.1 million, was financed through proceeds from equity, debt, and preferred stock sales. The company's stock has surged 118% over the past year and remains up nearly 27% year-to-date, trading at $365.95. In contrast, the best-performing crypto ETF, the T-Rex 2X Long MSTR Daily Target ETF, which is heavily weighted with Strategy's stock, delivered a 746% return year-to-date. Other notable ETFs, such as the Bitwise Crypto Industry Innovators ETF and the VanEck Digital Transformation ETF, posted returns of 79% and 76.7%, respectively, benefiting from their significant holdings in Strategy. ADVERTISEMENT Strategy's approach diverges from traditional ETF structures by offering direct exposure to Bitcoin through its corporate treasury. The company has consistently leveraged its balance sheet to acquire Bitcoin, utilizing various financial instruments, including convertible bonds and preferred stock offerings. This strategy has not only amplified its Bitcoin holdings but also attracted investors seeking indirect exposure to the cryptocurrency without the complexities of direct ownership. The company's commitment to Bitcoin was further solidified with its announcement of the '21/21 Plan,' aiming to raise $42 billion over three years—$21 billion through equity offerings and another $21 billion via fixed-income securities—to fund additional Bitcoin purchases. This ambitious plan underscores Strategy's belief in Bitcoin as a superior store of value and a strategic asset for corporate treasuries. Michael Saylor, Strategy's Executive Chairman, has been a vocal advocate for Bitcoin, often emphasizing its potential as a hedge against inflation and a more stable alternative to traditional fiat currencies. Under his leadership, the company has transformed from an enterprise software firm into a prominent player in the cryptocurrency space. The broader market has taken note of Strategy's performance, with analysts suggesting that its success could inspire other corporations to consider similar strategies. Companies like Trump Media & Technology Group and Strive Asset Management have already announced plans to allocate significant portions of their treasuries to Bitcoin, signaling a potential shift in corporate investment strategies. However, this aggressive approach is not without risks. The volatility of Bitcoin prices can lead to significant fluctuations in corporate valuations, and the reliance on debt to finance these purchases raises concerns about financial stability. Critics argue that such strategies may expose companies to undue risk, especially if Bitcoin prices experience sharp declines.
