Another day, another step deeper down the financial engineering rabbit hole for MicroStrategy (NASDAQ: MSTR ). The most prolific public investor in Bitcoin ( BTC-USD ) announced this morning that it will redeem ~$1.05B of outstandingAnalyst’s Disclosure: I/we have a beneficial long position in the shares of XYZ, BTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alph ...

MicroStrategy's Bitcoin Strategy - MicroStrategy shifted its strategy in 2020 by investing $250 million in Bitcoin, accumulating 21,454 Bitcoins initially and holding 450,000 Bitcoins as of Jan 13 [2] - The company's Bitcoin holdings are now worth $46.82 billion, representing 49% of its enterprise value of $94.69 billion [3] - MicroStrategy paid an average price of $62,473 per Bitcoin ($27.95 billion total), which is 40% lower than the current Bitcoin price of around $104,000 [3] - The company is the world's largest corporate holder of Bitcoin [3] Financial Impact and Leverage - MicroStrategy's total liabilities surged from $408 million in 2019 to $913 million in 2020, driven by its first major Bitcoin purchase [7] - By the end of 2023, total liabilities rose to $2.6 billion, with a debt-to-equity ratio of 1.2 [8] - As of Q3 2024, total liabilities reached $4.57 billion, while the debt-to-equity ratio remained steady at 1.2 [8] - The company's share count increased by 122% over the past five years due to new share offerings and convertible note conversions [8] Long-Term Strategy and Market Outlook - MicroStrategy's co-founder Michael Saylor predicts Bitcoin's price could soar 12,400% to $13 million by 2045 [4] - Saylor expects Bitcoin to grow from 0.1% of global capital today to 7% as financial institutions adopt Bitcoin-related services [4] - The company introduced a "21/21" plan to raise $42 billion ($21 billion in equity and $21 billion in fixed income securities) by 2027 to fund future Bitcoin purchases [6] - MicroStrategy believes Bitcoin's value will rise rapidly enough to cover its increasing debt and justify ongoing share dilution [9] Bitcoin Market Catalysts - Bitcoin's scheduled halvings, which reduce mining rewards by half every four years, are expected to tighten supply and make it more comparable to gold [5] - Increased adoption of Bitcoin spot price ETFs by retail and institutional investors could serve as a hedge against inflation [5] - Bitcoin's reputation as "digital gold" may drive inflation-affected countries to adopt it as a national currency [5] Future Prospects - MicroStrategy's stock has surged 2,550% over the past five years, driven by Bitcoin's price appreciation [4] - The company's Bitcoin holdings are expected to overshadow its stagnant software business, which is being revitalized with cloud-based subscriptions and generative AI tools [10] - Bitcoin's broader adoption by retail investors, institutions, companies, and governments could further drive its price higher over the next five years [11] - If Bitcoin's price crashes, MicroStrategy's rising debt and share dilution could significantly impact its stock value [11]

Dan Caplinger has no position in any of the stocks mentioned. Jason Hall has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ...

Join The Pragmatic Investor to stay ahead of the latest news and trends in the crypto space. Here's what you will get with your subscription:MicroStrategy Incorporated (NASDAQ: MSTR ) has come down around 15% in the last month, which is interesting when we consider that Bitcoin ( BTC-USD ) has only been down around 5%.The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a ...

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MicroStrategy (MSTR 5.29%) continues buying Bitcoin as it looks to raise more capital from investors.*Stock prices used were the afternoon prices of Jan. 12, 2025. The video was published on Jan. 14, 2025. ...

As of Jan. 14, 2025, two stocks in the information technology sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, acc ...

MicroStrategy (NASDAQ: MSTR), the world’s largest corporate Bitcoin holder, announced on January 13, the purchase of 2,530 Bitcoin (BTC) for $243 million, acquired at an average price of $95,972 per BTC.The latest purchase marks the company’s tenth consecutive weekly Bitcoin acquisition since October 31, 2024, when it revealed its ‘21/21 Plan.’This acquisition brings MicroStrategy’s total holdings to 450,000 BTC, acquired for a cumulative $28.2 billion, averaging $62,691 per Bitcoin. MicroStrategy weekly Bi ...

This account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically. Associated with SA contributors Thomas Potter and Elijah Buell.Analyst’s Disclosure: I/we h ...

TORONTO, Jan. 10, 2025 (GLOBE NEWSWIRE) -- Matador Technologies Inc. (“Matador” or the “Company”) (TSXV: MATA) is pleased to announce as of January 1, 2025, it has become a member of "Bitcoin for Corporations" which is an initiative established by MicroStrategy Inc. (“MicroStrategy”) (NASDAQ: MSTR) and Bitcoin Magazine focused on educating and supporting corporations in implementing Bitcoin strategies. "Bitcoin for Corporations" aims to help companies accelerate corporate Bitcoin adoption by empowering busi ...