MicroStrategy benefits from high correlation with Bitcoin prices, making it a strategic buy.

From Nasdaq

October 8, 2024 1:47 pm:

MicroStrategy (MSTR) has strategically accumulated Bitcoin on its balance sheet, outperforming the cryptocurrency and making it a more accessible option for institutional investors. MSTR shares have rallied over 211% this year, benefiting from their high correlation with Bitcoin’s price swings, particularly after the Fed’s interest rate cut.

MicroStrategy, originally a data software company, shifted focus to Bitcoin investments four years ago. With a total cost of $8.3 billion, the company now owns 226,500 Bitcoins valued at $14.3 billion, constituting about 38% of its market cap. CEO Michael Saylor’s bullish stance on Bitcoin and strategic debt-fueled acquisitions have propelled MSTR’s growth.

Investing in MicroStrategy may be more advantageous than buying Bitcoin directly, as the company’s stock offers the potential to amplify returns through its Bitcoin acquisitions strategy. With a Strong Buy consensus from Wall Street analysts and an average price target of $202.25, MSTR’s stock is positioned for further growth during crypto bull markets.

Read more at Nasdaq.: MicroStrategy Is a Strategic Buy to Capitalize on Bitcoin’s Outperformance