Latest news with #MSTR
Yahoo
36 minutes ago
- Business
- Yahoo
MicroStrategy Rises 28% Year to Date: Buy, Sell or Hold the Stock?
MicroStrategy MSTR shares have appreciated 27.9% year to date (YTD), outperforming the Zacks Computer Software industry's rise of 5.9% and the broader Zacks Computer and Technology sector's fall of 1.7%.MicroStrategy is the world's largest Bitcoin treasury company holding 553.555 bitcoins as of April 27, 2025, representing 2.6% of all bitcoins in existence. As of April 28, more than 70 publicly listed companies, including the likes of Marathon Digital MARA, Semler Scientific SMLR and KULR Technology KULR hold 720,728 bitcoins worth $68.5 shares have outperformed Marathon Digital, Semler Scientific and KULR Technology shares, YTD. Marathon Digital, Semler Scientific and KULR Technology shares fell 12.9%, 25.8% and 67.9%, respectively, over the timeframe. Image Source: Zacks Investment Research The stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend. Image Source: Zacks Investment Research However, bitcoin's volatility is a headwind for MSTR. Bitcoin is now trading above $105,891, much higher than the $76,000 it registered in early April. As of May 25, 2025, MSTR holds 580,250 bitcoins for a total purchase cost of $40.61 billion at an average price of roughly $69,979. The company benefits from the Trump administration's announcement of the establishment of a strategic Bitcoin reserve. Growing recognition of bitcoin as an asset class has attracted institutional interest, setting the stage for deeper integration of bitcoin into the U.S. financial system. These developments bode well for MicroStrategy's prospectsMSTR benefits from increasing bitcoin yield, 13.7% year to date (as of April 28, 2025), keeping the company on track to reach full year target of 15%, which is now raised to 25% and bitcoin dollar gain target to $15 billion (up from initial target of $10 billion). Bitcoin gains in dollar terms were $4.1 billion in the first quarter of 2025 and $5.8 billion as of April 28, 2025. The company's disciplined approach to capital raising through preferred equity offerings — Strike (8% convertible preferred is trading with an effective yield of roughly 9%) and Strife (10% fixed coupon perpetual preferred) — is a key catalyst. As of April 28, 2025, MSTR raised $6.6 billion through equity offerings and $3.4 billion through fixed income ($2 billion from convertible notes, $0.7 billion each through Strike and Strife).MicroStrategy has issued $20.9 billion in equities and $6.4 billion in fixed income securities as part of its 21/21 plan since Oct. 30, 2024. The company has $14.6 million remaining under fixed income securities and $0.1 million under equities as part of the existing plan. MicroStrategy currently plans to raise $42 billion through equity issuance and $42 billion through fixed income securities by the end of 2027. Under the current plan, the company has $21.1 billion in equity and $35.6 billion in fixed income securities remaining to be issued. MicroStrategy is benefiting from growing software subscription revenues that surged 62% year over year to $37.1 million and accounted for 33% of first-quarter 2025 total revenues. Subscription billings grew 38% year over year to $24.5 million. The company benefits from continuing cloud demand with its flagship Strategy One that powers some of the largest analytics deployments in the world. Strategy One supports varied industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. MicroStrategy is leveraging generative AI to automate and accelerate the deployment of AI-enabled applications across rich partner base that includes the likes of Amazon Web Services, Microsoft, STACKIT, and Google is a growth driver. For second-quarter 2025, the Zacks Consensus Estimate for MSTR's loss has been steady at 12 cents per share over the past week. The company reported a loss of 76 cents in the year-ago quarter. MicroStrategy Incorporated price-consensus-chart | MicroStrategy Incorporated Quote For 2025, the Zacks Consensus Estimate for MSTR's loss has been steady at 41 cents per share over the past week. The company reported a loss of $6.72 per share in 2024. MicroStrategy shares are overvalued, as suggested by the Value Score of F. In terms of Price/Book, MicroStrategy is trading at 3.06X compared with Marathon Digital's 1.38X and Semler Scientific's 2.38X, suggesting a premium valuation. Image Source: Zacks Investment Research Image Source: Zacks Investment Research MicroStrategy benefits from its growing bitcoin holdings and increasing subscription revenues. However, challenging macroeconomic conditions and uncertainty about tariffs increase volatility in bitcoin trading. Stretched valuation is a currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
4 hours ago
- Business
- Yahoo
Michael Saylor Outlines Strategy's Bear Market Playbook at Bitcoin Vegas
At the Bitcoin conference in Las Vegas, Strategy (MSTR) Executive Chairman Michael Saylor was asked how the company would respond if its multiple to net asset value (mNAV) fell below 1, as it did during the previous bear market. In response, Saylor drew an analogy to the Grayscale Bitcoin Trust (GBTC), stating, 'GBTC is a closed-end trust… a corporate entity that has no operational flexibility to manage its capital structure.' He emphasized that unlike GBTC, Strategy is an operating business with the ability to take on debt and manage its capital dynamically. Saylor argued that 'for any company to fall down to below 1 mNAV, the shareholders have lost faith in the management structure of the business.' If Strategy's stock 'went to $1 tomorrow,' he said, the company would respond by selling its preferred stock or fixed income instruments STRK and STRF and use the proceeds to repurchase common stock, thereby recapitalizing the company. Highlighting the importance of flexibility, Saylor stated, 'To create value, you need to create option value to generate as much optionality as possible. The more options, the greater the value.' He concluded by asserting, 'The thing that makes our company a monster is having multiple at-the-market offerings (ATMs) in multiple capital markets,' underscoring Strategy's multi-channel access to liquidity and financial resilience. Sign in to access your portfolio
Forbes
4 hours ago
- Business
- Forbes
Is MSTR Stock A Buy Or Sell At $370?
CHONGQING, CHINA - APRIL 26: In this photo illustration, the logo of MicroStrategy Incorporated is ... More displayed on a smartphone screen, with the company's branding visible in the background, on April 26, 2025, in Chongqing, China. (Photo illustration by) Strategy Inc. (NASDAQ: MSTR), a firm previously recognized for its business intelligence, mobile software, and cloud-based services, has evolved into a notable indicator for Bitcoin because of its considerable investments in the cryptocurrency. The company's stock has recorded approximately a 24% increase year-to-date, reflecting Bitcoin's wider upward trend. This increase in Bitcoin's value has been affected by factors including the Trump administration's supportive stance on cryptocurrency. Aside from the recent gains, MSTR stock has shown impressive long-term growth, rising nearly 500% since the beginning of 2024. This remarkable performance can be mainly ascribed to the following factors: We will explore the specifics of these factors. While MSTR stock has performed remarkably, if you seek a smoother investment experience than an individual stock, consider the High Quality portfolio, which has surpassed the S&P, achieving over 91% returns since its inception. Separately, see – Nvidia Stock's 1 Big Risk Strategy's sales have decreased from $496 million in 2023 to $459 million currently. This pattern seems to be a continuation of a wider decline in its core software business, which has been ongoing for some time. This can largely be attributed to the company's redirection of its main strategy from its business intelligence software to becoming a corporate holder of Bitcoin. Even before the intense focus on Bitcoin, Strategy's software business was facing slow or declining growth amid strong competition from other industry players, including Sisense, Domo, and Tibco, among others. Regarding margins, Strategy's net income margins have shown extreme variability, plunging from 86.5% in 2023 to an astonishing -1161% at present. This dramatic fluctuation is chiefly due to the accounting treatment of Bitcoin in the financial statements. The company recognizes non-cash digital asset impairment charges to reflect changes in the cryptocurrency's value, in compliance with Bitcoin accounting regulations. Strategy's price-to-sales (P/S) ratio has surged over 700%, skyrocketing from 21x in 2023 to 171x currently. This escalation demonstrates that the company's traditional software sales have become largely inconsequential to its valuation. Instead, investors mainly determine Strategy's value based on its significant Bitcoin holdings. This transition is attributable to several crucial factors: As of April 28, 2025, Strategy owned 553,555 Bitcoin at an average price of $68,459 per coin, amounting to $37.90 billion. With Bitcoin presently trading around $106,000, this signifies a solid 55% gain on their investment. The company has recently increased its Bitcoin holdings to 580,250. Currently trading at approximately $370, Strategy's stock has a price-to-sales (P/S) ratio of 171x, which is substantially higher than its three-year average of roughly 48x. However, this elevated P/S ratio is mostly irrelevant since MSTR's valuation is fundamentally driven by its Bitcoin holdings rather than its traditional software revenue. Therefore, if you believe Bitcoin will continue its strong performance, MSTR could represent an appealing investment opportunity. The stock has already seen a correction of over 30% from its 52-week high of around $540. Several factors indicate potential long-term growth for Bitcoin. Its limited supply naturally enhances its value, and a weakening U.S. dollar makes dollar-denominated assets like Bitcoin more attractive to international investors. Political support from the Trump administration suggests a more favorable regulatory landscape, and the possibility of establishing a U.S. crypto reserve further validates the asset. Increasing interest and investment from large financial institutions are also contributing to heightened demand. While MSTR provides an appealing avenue for gaining exposure to Bitcoin, it's important to recognize the substantial risks involved. MSTR has a history of significantly underperforming the broader markets during challenging macroeconomic periods. For instance, during the inflation shock of 2022, MSTR's value dropped by nearly 90%, which starkly contrasts with the S&P 500's peak-to-trough decline of 25.4%. Similarly, during the corrections caused by the COVID-19 pandemic, MSTR fell by 65%, compared to a 34% decline in the S&P 500. Given this historical volatility, investors contemplating MSTR should thoughtfully assess these risks, particularly in the current environment of macroeconomic uncertainty. Even with its 500% increase since early 2024, and factoring in the associated risks, MSTR might still attract long-term investors. However, those wary of the short-term volatility and high risks tied to crypto-related investments could explore alternative strategies. For example, the Trefis High Quality (HQ) Portfolio, a selection of 30 stocks, has consistently surpassed the S&P 500 over the past four years. This outperformance stems from HQ Portfolio stocks historically providing better returns with lower risk, offering a less volatile investment experience than the broader market, as evidenced in HQ Portfolio performance metrics.
Globe and Mail
6 hours ago
- Business
- Globe and Mail
Vivek Ramaswamy Is Betting Big on Bitcoin. Should You Buy the Hidden-Gem Stock Merging With His Company?
In recent years, a growing number of companies have raced to turn their balance sheets into Bitcoin (BTCUSD) treasuries, hoping to tap into the digital-asset boom and appeal to crypto-savvy investors. While major corporations like Strategy (MSTR) have led the charge, smaller players are now positioning themselves as lean, specialized alternatives. One emerging contender is Asset Entities (ASST), which is going to merge with entrepreneur and politician Vivek Ramaswamy's Strive Asset Management to pioneer a pure-play Bitcoin treasury business. Recently, the two firms announced a reverse merger and secured $750 million in PIPE financing. Under the combined strategy, ASST plans to acquire cash-rich, undervalued biotech firms, buying their balance-sheet cash at a discount, and redeploying that capital into Bitcoin. The goal is to build 'alpha-generating' accumulation strategies that outperform a simple Bitcoin holding, backed by an additional $750 million in potential warrant proceeds. For investors looking beyond the usual large-cap crypto bets, ASST offers a unique way to play Bitcoin's next leg up through a specialized, cash-leveraged vehicle. About ASST Stock Founded in 2020, Asset Entities is a specialized asset management firm delivering innovative solutions for corporate and individual clients. The company has a market cap of $112 million. After performing flat in the first half of 2025, shares of Asset Entities skyrocketed in early May, climbing more than 1,200% over the past month on news of its merger with Strive Asset Management. However, the stock still trades about 43% below its 52-week high near $13, leaving room for investors to potentially enter at a decent price. Financial Health Asset Entities generated $170,749 in revenue in the first quarter, primarily from paid Discord subscriptions, such as OptionsSwing and TikTok-linked communities. Management aims for about $1 million in total revenue for 2025, but that's small compared to the company's costs. Asset Entities lost $6.4 million in 2024 and another $1.62 million in Q1 2025, showing it remains unprofitable. By the end of Q1 2025, it had $4.21 million in cash and $4.99 million in total assets. Merging to Form a Bitcoin Treasury Company Asset Entities is merging with Strive Asset Management to become the 'first publicly traded asset management Bitcoin treasury company.' The new company, led by Strive CEO Matt Cole, will focus on building a large Bitcoin reserve. It will offer stock in exchange for Bitcoin, buy cash-rich companies at a discount, and purchase cheap Bitcoin-related assets like Mt. Gox claims. It also plans to buy crypto loans at discounted prices. To fund these moves, the company raised $750 million and could raise $750 million more. Instead of making money through normal business sales, the company wants to grow its Bitcoin per share. The idea is that as Bitcoin gains value, shareholders benefit. The company hopes it will create long-term value by growing its Bitcoin holdings faster than Bitcoin itself rises. The Bottom Line Vivek Ramaswamy's Strive will turn Asset Entities into a dedicated Bitcoin treasury backed by $750 million in fresh funding. While the stock carries risk as it builds out its plan, its cash position and unique strategy offer investors direct Bitcoin exposure. If you're comfortable with crypto volatility, ASST could be worth a try.
Yahoo
6 hours ago
- Business
- Yahoo
BlackRock's Bitcoin ETF Reaches Record Low Volatility, Draws Billions in Flows
BlackRock's iShares Bitcoin Trust exchange-traded fund (IBIT) is experiencing record-low volatility, according to Senior Bloomberg ETF analyst Eric Balchunas, which is attracting more interest from larger investors looking for a "digital gold" rather than speculative tech-like behavior. The 90-day rolling volatility of 47.64 is the lowest since the ETF was introduced in January 2024, Balchunas posted on X, a degree of stability that can be self-reinforcing. As volatility drops, larger and more risk-averse investors tend to enter, which in turn further suppresses volatility. "The thing with volatility is it can become self-fulfilling," Balchunas said in his post. "The lower the volatility gets, the more bigger investors will bite who will help lower volatility even more. The same 'should' happen with correlation too. This is a direct result of the 'suitcoiners.'' The trend is already underway, Balchunas said, citing IBIT's outsized inflows in recent weeks. Since its debut, IBIT has pulled in $49 billion in net inflows, more than four times the amount invested into the second-ranked Fidelity Wise Origin Bitcoin Fund (FBTC), which has attracted less than $12 billion, data from Farside Investors show. In contrast, Strategy (MSTR), the software company that has made buying bitcoin BTC a strategic priority, operates on a different appeal. MSTR attracts speculators and options traders who thrive on higher implied volatility (IV). However, even MSTR's IV has dipped recently to 60%, with historical volatility at 49%, contributing to its muted price action. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
