Latest news with #BitcoinStandard
Yahoo
09-06-2025
- Business
- Yahoo
Strategy Incorporated (MSTR): A Bull Case Theory
We came across a bullish thesis on Strategy Incorporated (MSTR) on by Chris Millas. In this article, we will summarize the bulls' thesis on MSTR. Strategy Incorporated (MSTR)'s share was trading at $378.10 as of 4th June. 10 Companies Buying Bitcoin Like There's No Tomorrow Strategy₿, formerly MicroStrategy, has redefined itself as the leading corporate Bitcoin treasury, building a business model engineered entirely around acquiring and holding Bitcoin. Michael Saylor's vision is simple: create financial instruments that attract all investor types, use the capital raised to buy Bitcoin, and repeat the cycle to maximize Bitcoin Per Share and Bitcoin Yield. Strategy's toolkit includes a suite of capital levers—convertible bonds, preferred equities like $STRK, $STRF, and $STRD, and at-the-market offerings—each structured to capture fiat and convert it into Bitcoin without overburdening the balance sheet. The firm's preference for preferred equity over traditional debt stems from its flexibility, as these instruments carry no maturity, no repayment obligations, and allow for paused dividends in challenging markets, all while preserving balance sheet strength and creditworthiness. Volatility in Strategy's share price is not a bug but a feature. Upside volatility accelerates bond conversions to equity, while downside volatility resets the base, making future instruments more appealing. Convertible arbitrage traders also amplify this effect, dynamically shorting or covering Strategy's stock based on delta shifts, profiting from volatility while adding liquidity. Strategy may be deliberate in issuing convertibles due to timing lockouts and a need for favorable market conditions—high volatility and low leverage—so they can secure low coupons and favorable terms. Despite the speculative nature of Bitcoin and its price-linked instruments, Strategy's debt is not backed by Bitcoin collateral, shielding it from margin calls. With unencumbered Bitcoin reserves, scalable capital access, and investor products designed for every risk appetite, Strategy offers a way to potentially outperform Bitcoin itself as it continues advancing toward a Bitcoin Standard. Previously, we covered a bearish thesis on Strategy Incorporated (MSTR) by Charly AI on Substack, which depicts MSTR as an overleveraged Bitcoin proxy with declining core software and fragile finances. This thesis has partially played out as the stock price has depreciated by -0.9% however, it might be too soon to speculate. The bullish view by Chris Millas frames it as an innovative Bitcoin-focused entity using flexible capital tools to amplify upside while managing risk. Both agree it's a Bitcoin bet—one calls it reckless, the other strategic. Strategy Incorporated (MSTR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held MSTR at the end of the first quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of MSTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey
Yahoo
28-05-2025
- Business
- Yahoo
GameStop stock slides 10% as company announces $500 million bitcoin purchase
GameStop (GME) stock sank more than 10% on Wednesday after the video game retailer announced it purchased 4,710 bitcoin (BTC-USD). With bitcoin trading around $108,000 per token, the investment is valued at over $500 million. The token reached a record high north of $111,000 last week. In March, the company, led by billionaire Ryan Cohen, formally announced that its board unanimously approved adding the cryptocurrency as a treasury reserve asset. Subsequently, the meme stock tumbled nearly 25% in one session after the retailer said it intended to raise $1.3 billion via convertible senior notes to purchase bitcoin. Public companies have increasingly added bitcoin to their balance sheets, following the lead of Strategy (formerly MicroStrategy) (MSTR), the largest corporate holder of bitcoin. On Tuesday, Trump Media & Technology Group (DJT) unveiled plans to raise $2.5 billion to create what it claims will be one of the largest bitcoin treasuries held by any public company. Shares of Trump Media, which are majority owned by President Trump, fell over 10% following the announcement. 'We're at a space where people are racing to put this on their balance sheet,' BitcoinIRA co-founder & coo Chris Kline told Yahoo Finance on Wednesday morning. 'With the hype and expected price movements ahead... that's a huge growth in the balance sheet for these groups," he added. Bernstein analyst Gautam Chhugani points to increasing corporate adoption of bitcoin as a bullish sign for the token. "Globally, ~80 corporates have adopted the 'Bitcoin Standard,' adding BTC to their treasuries and now holding approximately 3.4% of total supply," Gautam Chhugani wrote earlier this month. That amounts to roughly 720,000 tokens — up 160% from the 270,000 held at the end of 2023. Bernstein forecasts that bitcoin will reach $200,000 by year-end. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
GameStop stock slides as company announces $500 million bitcoin purchase
GameStop (GME) stock sank more than 3% on Wednesday after the the video game retailer announced it has purchased 4,710 bitcoin (BTC-USD). With bitcoin trading around $108,000 per token in early trading, the investment is valued at over $500 million. The token reached a record high north of $111,000 last week. In March, the company led by billionaire Ryan Cohen formally announced its board unanimously approved adding the cryptocurrency as a treasury reserve asset. Subsequently, the meme stock tumbled nearly 25% in one session after the retailer said it intended to raise $1.3 billion via convertible senior notes to purchase bitcoin. Public companies have increasingly added bitcoin to their balance sheets, following the lead of Strategy (formerly MicroStrategy) (MSTR), the largest corporate holder of bitcoin. On Tuesday Trump Media & Technology Group (DJT) unveiled plans to raise $2.5 billion in order to create what it claims will be one of the largest bitcoin treasuries held by any public company. Shares of Trump Media, which are majority owned by President Trump, fell over 10% following the announcement. Bernstein analyst Gautam Chhugani points to increasing corporate adoption of bitcoin as a bullish sign for the token. "Globally, ~80 corporates have adopted the 'Bitcoin Standard,' adding BTC to their treasuries and now holding approximately 3.4% of total supply," wrote Gautam Chhugani earlier this month. That amounts to roughly 720,000 tokens — up 160% from the 270,000 held at the end of 2023. Bernstein forecasts bitcoin will reach $200,000 by year-end. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
Yahoo
22-05-2025
- Business
- Yahoo
Bitcoin hovers near $111,000 as crypto momentum grows
Bitcoin broke a new record earlier today before settling at $111,000 per token, driven by institutional buying, a crypto-friendly environment, and an increasing appetite for an alternative store of wealth amid US debt fears. The digital currency passed $111,700 on Thursday as a massive tax-cut bill made its way through Congress. "The market today is reacting to the fact that the government has sort of said it's on board to grow deficits, to print more money, to expand the fiscal debt — and that's forcing people to look outside of fiat currencies to an alternative," Matt Hougan, CIO of digital asset management firm Bitwise, told Yahoo Finance on Thursday morning. The new record comes amid concerns of recent rising bond yields, a sign that investors may be growing uneasy with ballooning US debt levels. "I think something may have started to break with investors' long-term appetite for debt," Hougan added. Institutional buying has also lifted prices in recent weeks as spot exchange-traded funds (ETFs) and a friendly regulatory framework promised by the Trump administration have triggered increased demand. "That's new demand against fixed supply, and that pushes prices up," Hougan said, highlighting more than $8 billion flowing into bitcoin-related ETFs in the past 30 days. Bitcoin has rallied 60% since President Trump won the White House and put in place key figures to forge ahead with a token-friendly framework, a promise on which he campaigned. One of those moves included placing cryptocurrency advocate Paul Atkins as SEC chair following Gary Gensler's departure in January. Read more: How would Trump's strategic bitcoin reserve work? This week's push higher in prices also comes on the heels of a key procedural win in the Senate on Monday night for legislation to regulate stablecoins — cryptocurrencies pegged to assets like the US dollar. The bill, which could face a final vote as early as this week, is seen as a major step toward broader crypto adoption. Meanwhile, on Thursday morning, the Wall Street Journal reported that crypto exchange Kraken plans to offer "tokenized equities" of popular stocks like Apple (AAPL), Tesla (TSLA), and Nvidia (NVDA) to non-US customers. Adding to the industry's momentum, Coinbase (COIN) on Monday became the first and only cryptocurrency exchange to join the benchmark S&P 500 (^GSPC) index — a symbolic milestone for the industry. Companies are increasingly adding bitcoin to their balance sheets. "Globally, ~80 corporates have adopted the 'Bitcoin Standard,' adding BTC to their treasuries and now holding approximately 3.4% of total supply," Bernstein analyst Gautam Chhugani wrote in a recent note. That amounts to roughly 720,000 tokens — up 160% from the 270,000 held at the end of 2023. Bernstein forecasts that bitcoin will reach $200,000 by year-end. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Bitcoin surges to new record above $109,500
Bitcoin (BTC-USD) hit an intraday high above $109,500 on Wednesday, driven by bullish momentum and a strengthening regulatory outlook for crypto. At around 5:30 p.m. ET, the token was trading north of $108,000 even after bond yields rose and the broader market slid. The token has jumped more than 40% since falling to around $76,000 in early April as the broader market rebounded after President Trump partially rolled back his tariff policy. "I think the market is now in default buy the dip mode, whereas a couple of months ago, the market was certainly in sell the rip mode," Sean Farrell, head of digital asset strategy at Fundstrat, said in a client note on Monday. Bitcoin's record comes on the heels of a key procedural victory in the Senate on Monday night for a bill to regulate stablecoins — cryptocurrencies tied to assets like the US dollar. The measure could face a final vote as early as this week. "The stablecoin bill is important because it serves as a good barometer for broader legislative progress in crypto," Farrell noted, adding that its passage could increase the odds of additional legislation covering altcoins and even the formation of a strategic bitcoin reserve. Bitcoin has rallied since President Trump won the White House and put in place key figures to forge ahead with a token-friendly framework, a promise on which he campaigned. One of those moves included placing cryptocurrency advocate Paul Atkins as SEC chair following Gary Gensler's departure in January. "All of a sudden, an industry that was hated for four years has an SEC chair who is pro-crypto," Mike Novogratz, CEO of Galaxy Digital Holdings, a cryptocurrency investment firm, told Yahoo Finance last week. "They're embracing us instead of chasing and prosecuting us. Now we're getting legislation — it's a huge tailwind for the industry." Adding to the momentum, Coinbase (COIN) on Monday became the first and only cryptocurrency exchange to join the benchmark S&P 500 (^GSPC) index — a symbolic milestone for the industry. In another sign of crypto's growing institutional foothold, corporations are increasingly adding bitcoin to their balance sheets, following the lead of Strategy (formerly MicroStrategy) (MSTR), the largest corporate holder of bitcoin. "Globally, ~80 corporates have adopted the 'Bitcoin Standard,' adding BTC to their treasuries and now holding approximately 3.4% of total supply," Bernstein analyst Gautam Chhugani wrote in a recent note. That amounts to roughly 720,000 tokens — up 160% from the 270,000 held at the end of 2023. Bernstein forecasts bitcoin will reach $200,000 by year-end. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
