Latest news with #MicroStrategy
Yahoo
6 hours ago
- Business
- Yahoo
Bitcoin Rises as U.S. Debt Surpasses $37 Trillion
Bitcoin (BTC-USD) has continued to climb in 2025, reaching a market capitalization of $2.1 trillion, even as the U.S. national debt surpasses $37 trillion, according to Cointelegraph. The contrast between fiat-driven fiscal expansion and Bitcoin's fixed-supply model has drawn growing interest from institutions, sovereign funds, and individual investors. Warning! GuruFocus has detected 7 Warning Signs with MSTR. Regulatory approval of spot Bitcoin exchange-traded funds in early 2024 accelerated mainstream access, with $45 billion in inflows recorded so far this year. Major players including BlackRock (BLK, Financials), Fidelity, Strategy (formerly MicroStrategy) (MSTR, Financials), and GameStop (GME, Financials) have incorporated Bitcoin into their treasury strategies. Tesla (TSLA, Financials) also remains a high-profile corporate holder. El Salvador, which adopted Bitcoin as legal tender in 2021, has continued to advance its crypto-financed Volcano Bonds project. Bitcoin's appeal as a decentralized hedge against inflation and currency debasement has grown alongside concerns about long-term fiscal stability. While governments continue to rely on stimulus spending and debt issuance, Bitcoin's scarcity and censorship-resistant design present an alternative monetary framework. A Cointelegraph analysis suggests that if just 1% of the $7.6 trillion in U.S. stimulus spending since 2020 had been allocated to Bitcoin, it would have amounted to a $76 billion injectionroughly 3.6% of Bitcoin's current market cap. Such capital flows could have driven a 5% to 15% appreciation in Bitcoin's price due to its low float and high price sensitivity. While volatility and political risk remain barriers to sovereign adoption, Bitcoin's expanding institutional presence, technological upgrades, and cultural significance continue to reshape how investors view monetary policy and long-term value preservation. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
7 hours ago
- Business
- Yahoo
Bitcoin Rises as U.S. Debt Surpasses $37 Trillion
Bitcoin (BTC-USD) has continued to climb in 2025, reaching a market capitalization of $2.1 trillion, even as the U.S. national debt surpasses $37 trillion, according to Cointelegraph. The contrast between fiat-driven fiscal expansion and Bitcoin's fixed-supply model has drawn growing interest from institutions, sovereign funds, and individual investors. Warning! GuruFocus has detected 7 Warning Signs with MSTR. Regulatory approval of spot Bitcoin exchange-traded funds in early 2024 accelerated mainstream access, with $45 billion in inflows recorded so far this year. Major players including BlackRock (BLK, Financials), Fidelity, Strategy (formerly MicroStrategy) (MSTR, Financials), and GameStop (GME, Financials) have incorporated Bitcoin into their treasury strategies. Tesla (TSLA, Financials) also remains a high-profile corporate holder. El Salvador, which adopted Bitcoin as legal tender in 2021, has continued to advance its crypto-financed Volcano Bonds project. Bitcoin's appeal as a decentralized hedge against inflation and currency debasement has grown alongside concerns about long-term fiscal stability. While governments continue to rely on stimulus spending and debt issuance, Bitcoin's scarcity and censorship-resistant design present an alternative monetary framework. A Cointelegraph analysis suggests that if just 1% of the $7.6 trillion in U.S. stimulus spending since 2020 had been allocated to Bitcoin, it would have amounted to a $76 billion injectionroughly 3.6% of Bitcoin's current market cap. Such capital flows could have driven a 5% to 15% appreciation in Bitcoin's price due to its low float and high price sensitivity. While volatility and political risk remain barriers to sovereign adoption, Bitcoin's expanding institutional presence, technological upgrades, and cultural significance continue to reshape how investors view monetary policy and long-term value preservation. This article first appeared on GuruFocus.
Yahoo
8 hours ago
- Business
- Yahoo
MSTR Continues to Expand Bitcoin Holding: What's the Path Forward?
MicroStrategy MSTR, doing business as 'Strategy,' is the world's largest corporate holder of Bitcoin, which reinforced its bullish stance by purchasing 10,100 BTC for $1.05 billion, at an average price of $104,080 per coin between June 9 and June 15, 2025. This marks MSTR's second major Bitcoin purchase in June, reinforcing its aggressive treasury strategy amid market volatility driven by the Israel-Iran conflict. The company's total Bitcoin holdings have now grown to approximately 592,100 Bitcoin, which is worth more than $63 billion. Since initiating its Bitcoin strategy in 2020, MSTR stock has surged by more than 3,000%, reflecting the exponential rise in Bitcoin's price and investor confidence in the firm's bold treasury now controls more Bitcoin than any other publicly traded company, solidifying its position as a pioneer in institutional crypto adoption. The recent Bitcoin purchase was financed through multiple capital-raising initiatives. The company utilized proceeds from its STRK and STRF at-the-market (ATM) equity programs, along with the $979.7 million initial public offering (IPO) of STRD preferred shares, completed on June 10, addition to expanding its Bitcoin holdings, Strategy reported a 13.7% year-to-date yield on its BTC treasury, underscoring the strength of its long-term investment thesis. Encouraged by this performance, the company has raised its full-year 2025 targets, now aiming for a 25% BTC yield and a $15 billion total Bitcoin gain. Compared to Strategy, MARA Holdings MARA and Coinbase COIN offer two distinctly different approaches to crypto Holdings stands out as one of the largest Bitcoin miners, holding 47,531 BTC at the end of the first quarter of 2025. MARA Holdings combines long-term asset accumulation with operational efficiency, leveraging low-cost mining to maintain strong is the largest U.S.-based cryptocurrency exchange, with a well-diversified business model spanning trading, custody, staking and merchant services. Coinbase's robust regulatory standing and global infrastructure provide stability during volatile cycles. With rising crypto adoption, transaction growth and utility expansion, Coinbase is well-positioned for long-term success. Low leverage and a solid financial foundation further support its ability to scale operations and serve both retail and institutional investors effectively. Shares of Strategy have gained 27.4% year to date compared with the Zacks Computer – Software industry's return of 11.3%. MSTR shares have outperformed Coinbase and MARA Holdings. While COIN shares returned 18.9%, MARA Holdings dipped 13.6%. Image Source: Zacks Investment Research MSTR has a Value Score of F. It is currently trading at a Price/Book ratio of 3.05 compared to the sector's 9.67X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for MSTR's 2025 loss is currently pegged at $15.73 per share, unchanged over the past 30 days. The estimate suggests a steep year-over-year decline of 134.08%. Image Source: Zacks Investment Research MSTR stock currently carries a Zacks Rank #3 (Hold). 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 Coinbase Global, Inc. (COIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
CNBC
9 hours ago
- Business
- CNBC
How the MicroStrategy bubble could pop, hurting your portfolio
Microstrategy's rapid rise in market value and continued bitcoin purchases have created risk, even in the portfolios of some investors aiming to ignore crypto altogether, according to JPMorgan. The company, which now calls itself simply Strategy, was the first major firm to transform itself into a bitcoin treasury company. That resulted in a surging stock price and a position in some major market indexes, such as the Nasdaq-100 and the Russell 1000 . JPMorgan strategist Nikolaos Panigirtzoglou cautioned in a note to clients that Strategy's status in those indexes can cause pain for investors when a downturn comes, and could even scare off some more crypto-friendly investors. He described the company as a "leveraged bitcoin fund." "The more bitcoin MicroStrategy buys, the higher the bitcoin price, thus inducing even higher market cap and even higher weights in equity indices. This self-reinforcing circle increases the risk of a boom and bust cycle, making MicroStrategy investors less comfortable with buying MicroStrategy stock," the note said. Even though MicroStrategy is not part of the S & P 500, JPMorgan estimated that close to $50 billion of the investment in the company is tied to its inclusion in indexes — with $21 billion of that coming from passive funds. The risk comes not just from the volatility common to bitcoin, but also Strategy's valuation. Strategy executive chairman Michael Saylor said in an X post on June 16 that the company now owns 592,100 bitcoin. That amounts to roughly $61 billion, based on crypto market prices as of Friday afternoon. YTD mountain Bitcoin was trading just below $104,000 on Friday afternoon. While that stash makes Strategy one of the world's largest bitcoin holders, it is still less than the company's market cap, which now sits at roughly $103 billion after the stock price surged about 150% over the past year. And it would be a stretch to say Strategy's small software business makes up the rest of that value, as first quarter revenues were just $111.1 million. Cash flow could also be a concern in the future. Panigirtzoglou said that investors who are financing the bitcoin purchases by buying the company's debt and preferred stock are expecting regular payouts in return that could strain the company's finances. "The sum of debt and preferred shares now accounts for almost 1/6th of the bitcoin assets held by MicroStrategy. Such high yields are only sustainable if the bitcoin price continues to rise steeply in the future. If the bitcoin price fails to achieve sustained and strong annual appreciation in the future, preferred stock issuance and the MicroStrategy stock price could come under severe pressure," the JPMorgan note said.
Bloomberg
9 hours ago
- Business
- Bloomberg
AQR's Cliff Asness Sides With Jim Chanos in Critique of Michael Saylor's Strategy
AQR Capital Management 's Cliff Asness says he's in agreement with famed short seller Jim Chanos when it comes to his criticism of Strategy founder Michael Saylor's claim that the use of convertible debt affords the leveraged Bitcoin proxy downside protection while continuing to accumulate the cryptocurrency. The critique is centered around whether there is 'recourse' for the company formally known as MicroStrategy Inc. to pay back holders of its convertible bonds, through which Strategy raised roughly $10 billion to fund Bitcoin purchases. While Saylor said this type of debt 'is not going to get called' and can be paid off with stock if the price of Bitcoin tumbles, both Asness and Chanos disagreed. In a Friday post on social media platform X, Asness said Chanos 'is of course right.'
