MichaelSaylor’sMicroStrategyisbackinthenews,withitsstocktradingata25-yearhigh.TradingView’srecentdatashowsthatMicroStrategy(MSTR)hit$235.89inThursday’ssession.Thestock’spriceincreasedbymorethan7%onOctober25th.MicroStrategy’spriceactionlastThursdaycontinuedits6-weekrallyandcameaheadofitsscheduledQ3earningsreport.
Thisweek’sstockperformancereflectedthecompany’sconsistentgrowthoverthepastfewyears.MicroStrategyhasoutperformedmostofitspeersintheS&P500indexandevenoutpacedMicrosoft’sgrowthsince1999.Accordingtoobservers,MicroStrategyisbullish,withmarketanalystslisting$245asthestock’snexttarget.
MicroStrategyContinuesItsBitcoinFocus
MicroStrategy,aVirginia-basedBitcoindevelopmentcompany,iscurrentlytheworld’slargestcorporateholderofBitcoin,with252,222BTC.WithBitcoin’scurrentpriceof$67,392,thecompanyholdsmorethan$17billioninassets.
MicroStrategyStockHitsNewHighs
MicroStrategy’sstock(MSTR)hassoaredover7%toa25-yearhighof$236,withacurrentmarketcapof$47billion,overtakingMicrosoftinall-timestockgains.
SinceadoptingBitcoinasatreasuryassetin2020,MicroStrategy’sstockisup…pic.twitter.com/cyXS0KODCD
—TheWolfOfAllStreets(@scottmelker)October25,2024
Initially,thecompanydevelopedsoftwaretoanalyzeexternalandinternaldatatohelpdecision-making,withIBMCognos,OracleCorporation’sBIPlatform,andSAPAGBusinessobjectsasitsprimarycompetitors.However,inAugust2020,thecompanychangeditsbusinessmodeltofocusonBitcoin.Thecompanyhasraised$4.25billionfromitsequityofferings,thefoundationforgrowingitsBitcoinholdings.
MicroStrategy’sBitcoinPlanHasItsCosts,Too
AspartofitsBitcoinplan,itaimstobuyBTCateveryopportunity.Forthemostpart,Saylor’sstrategywasahit.However,thebusinessplantofocusonBitcoincameatacost,andSaylorearnedafewdetractorsandcriticsalongtheway.
Forexample,thecompanyhasexpandeditsconvertiblenoteofferingtoraisefundstobuymoreBitcoin.However,thebulkofthesenotesdonotmatureuntil2032.SomemarketobserversalsosaythatMicroStrategyisinadifficultsituation,especiallyduringmarketdownturns.SincethecompanyreliesonBitcoin,thecompany’sfutureisdependentoncrypto’sextremevolatility.Althoughmostcriticismsarevalid,MichaelSaylorremainsdefiantandhassincedoubleditsBTCinvestments.
Hey@SatyaNadella,ifyouwanttomakethenexttrilliondollarsfor$MSFTshareholders,callme.pic.twitter.com/NPnVvL7Wmj
—MichaelSaylor⚡️(@saylor)October25,2024
NextTargetForMicroStrategyIs$245
MarketobserversarenowbullishonSaylor’scompany.AccordingtoMarkPalmer,thecompany’sstockhasboasteda17.8%yieldsincestartingitsBitcoinstrategy.Palmerandtheotheranalystsnowtarget$245toaddressthissuddensurgeandbullishsentiment.Palmeraddsthatthecompany’ssharepricehasincreasedby1,600%inthelastfouryears,andmoregainsarepossible.
ItalsohelpsthatMichaelSaylorhasremainedsteadfastinhisvisionandpassionforBitcoin.InarecentTwitter/Xpost,MicroStrategy’sexecutivechairmanhintedatthecompany’snextmoveandmadeapitchtoMicrosoft’sSatyaNadella.
FeaturedimagefromDall.E,chartfromTradingView
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