Key TakeawaysMicroStrategy shares could remain in focus on Tuesday after soaring 13% to a new record high following news the software analytics company had purchased an additional $4.6 billion of bitcoin. Gains in the stock have accelerated since breaking out above a rectangle formation, with share turnover registering its highest level last week since going public in 1998.A bars pattern, which takes the stock’s trend higher from October 2023 to March this year and repositions it from the rectangle formatio ...

Core Viewpoint - Michael Saylor, a prominent advocate for Bitcoin, believes the cryptocurrency is poised for significant growth, potentially reaching $13 million by 2045, which represents a 16,939% increase from its current price of approximately $76,296 [3]. Group 1: Bitcoin's Performance and Predictions - Bitcoin has experienced a remarkable year, doubling in value and reaching new all-time highs, driven by the introduction of spot Bitcoin ETFs, lower interest rates, and its perception as an inflation hedge [1][2]. - Saylor forecasts an annual return of 29% for Bitcoin over the next two decades, supported by its historical annual rate of return of 46% over the past four years [4]. Group 2: MicroStrategy's Strategy - MicroStrategy plans to raise $42 billion over the next three years, with half of the funds coming from equity sales and the other half from debt, aimed at purchasing more Bitcoin [5]. - The company positions itself as a "Bitcoin Treasury Company," intending to use the additional capital to enhance its Bitcoin holdings as a reserve asset [6]. Group 3: Regulatory Environment and Market Conditions - The recent election may lead to regulatory relief for Bitcoin and the broader crypto industry, with potential changes in leadership at the SEC [7]. - Current SEC regulations, particularly SAB-121, pose challenges for banks holding Bitcoin, but the removal of such regulations could encourage more financial institutions to act as custodians for Bitcoin [8]. - Bitcoin is increasingly viewed as a hedge against inflation, with notable figures like BlackRock's CEO comparing it to gold, especially in a long-term inflationary environment [9]. - A forecasted decline in interest rates may make Bitcoin more attractive as safer assets yield less and struggle to keep pace with inflation [10]. Group 4: Market Sentiment - While the future price of Bitcoin remains uncertain, various factors are converging that could drive its price higher, indicating a potentially bullish outlook for the cryptocurrency [11].

Though many technology and cryptocurrency stocks have achieved massive success in 2024, with MicroStrategy (NASDAQ: MSTR) being a prime example as it is up 420.42% year-to-date (YTD), few have matched the feat accomplished by one nano-cap Bitcoin (BTC) miner.BTC Digital Ltd. (NASDAQ: BTCT) entered an incredible surge during the November 12 session and rallied 316.67% within a single session from its previous closing price of $2.52 to $10.50. At one point on Tuesday, the rally appeared even more remarkable a ...

MIAMI, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Defiance ETFs, a leading provider of thematic and leverage-focused exchange-traded funds, is thrilled to announce that its MSTX ETF (Daily Target 2X Long MSTR ETF) has surpassed $1 Billion in assets under management (AUM). This milestone underscores the strong investor demand and confidence in the product’s innovative approach to offering amplified exposure to MicroStrategy Inc. (MSTR), a company known for its substantial Bitcoin holdings and cutting-edge data analyt ...

MicroStrategy Inc. (NASDAQ: MSTR) has been riding the crypto wave, with its stock price surging alongside Bitcoin’s (BTC) recent all-time highs. Following the acquisition of an additional 27,200 BTC between October 31 and November 10 at an average price of $74,463 per coin, MicroStrategy now holds a substantial 279,420 BTC, valued at approximately $23 billion according to Bitcoin Treasuries.With Bitcoin currently trading around $87,000, this holding has positioned MicroStrategy as the top corporate Bitcoin ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSTR 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 Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any i ...

Core Viewpoint - Michael Saylor, Executive Chairman of MicroStrategy, is a leading advocate for Bitcoin, promoting it as "digital gold" and a superior alternative to traditional gold [1][2] Group 1: Bitcoin Investment and Market Dynamics - MicroStrategy has generated billions in profits since adopting the "Bitcoin Standard," establishing Saylor as a prominent figure in the Bitcoin community [2] - Saylor believes the current period represents a "Bitcoin gold rush" that began in January 2024 and will last until November 2034, when 99% of Bitcoin will be mined [2] - The fixed supply of Bitcoin is capped at 21 million, contrasting with fiat currencies, which can be printed without limit [3] Group 2: Impact of ETF Approval - The approval of Bitcoin ETFs has significantly increased demand from institutional investors, with Blackrock's iShares Bitcoin ETF surpassing its Gold ETF in assets within 10 months [4] - ETF approval solidifies Bitcoin's legitimacy, making it difficult for regulators to reverse their stance on the cryptocurrency [4] Group 3: Institutional Adoption - Bitcoin ETFs, with Coinbase as the custodial exchange, facilitate access for various entities, including companies, nation-states like El Salvador, and pension/mutual funds [5] Group 4: Political Developments - Senator Cynthia Lummis announced plans to build a U.S. Bitcoin Strategic Reserve, indicating growing political support for Bitcoin [6] Group 5: Market Timing - Historical data suggests that the optimal time to own Bitcoin is approximately 150 days after a "halving" event and close to presidential elections [7] Conclusion - Saylor's predictions regarding Bitcoin have proven accurate, supported by substantial investments and a strong bullish thesis for the cryptocurrency's future [9]

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical ...

Financial Data and Key Metrics Changes - MicroStrategy reported a total Bitcoin market value of $18 billion as of the end of Q3 2024, holding 252,220 Bitcoins [6] - The company acquired an additional 25,889 Bitcoins at an average price of $60,839, totaling a purchase cost of $1.6 billion [7] - Year-to-date, the price of Bitcoin has appreciated significantly, driven by the approval of Spot Bitcoin Exchange Traded Products (ETPs) [7] - Software business revenues were $116 million, down 10% year-over-year, reflecting the transition from on-premise to cloud services [27] - Non-GAAP subscription billings grew by 93% year-over-year to $32.4 million, marking four consecutive years of double-digit growth [20][30] Business Line Data and Key Metrics Changes - The software business is transitioning to cloud offerings, with subscription services revenues now comprising approximately 24% of total revenues, having increased by 32% year-over-year [31] - Product license revenues are expected to decline further as the company shifts focus to cloud services [28][32] - The company reported strong cloud bookings, which helped offset lower product license contracts [29] Market Data and Key Metrics Changes - The market value of MicroStrategy's Bitcoin holdings was $16 billion as of September 30, 2024, with an average purchase price of $39,000 per Bitcoin [40] - The company is the largest corporate holder of Bitcoin globally, with a strategy focused on Bitcoin as a treasury reserve asset [6][10] Company Strategy and Development Direction - MicroStrategy aims to raise $42 billion in capital over the next three years, targeting $21 billion each in equity and fixed income capital primarily for Bitcoin acquisition [16][18] - The company has adopted a new descriptor as the world's first and largest Bitcoin treasury company, focusing on Bitcoin as its primary treasury reserve asset [10] - The strategic plan includes leveraging intelligent capital allocation to increase Bitcoin holdings while managing overall leverage [50][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the maturation of Bitcoin as an institutional-grade asset class, citing increased regulatory recognition and institutional adoption [7] - The company anticipates continued strong demand for its cloud platform and expects subscription services revenues to grow in the long term despite short-term declines in total recognized revenue [21][24] - Management highlighted the importance of achieving a positive BTC yield, revising the target to 6% to 10% annually for the next three years [57][58] Other Important Information - The company redeemed $500 million in senior secured notes, resulting in all Bitcoin holdings becoming unencumbered [9][38] - MicroStrategy plans to adopt new FASB fair value accounting rules for Bitcoin holdings starting Q1 2025, which will impact retained earnings [40][41] Q&A Session Summary Question: What is the outlook for Bitcoin as a treasury reserve asset? - Management believes Bitcoin is becoming increasingly recognized as a digital capital asset, with significant institutional interest and adoption [61][62] Question: How does MicroStrategy's performance compare to traditional asset classes? - MicroStrategy has outperformed the S&P 500 and other asset classes significantly since adopting the Bitcoin standard, demonstrating the strength of Bitcoin as an investment [68][69] Question: What are the implications of the new capital raising strategy? - The new strategy aims to leverage capital markets effectively to enhance Bitcoin holdings while maintaining shareholder value through intelligent leverage [50][57]

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