From Nasdaq, Inc.:

The Securities and Exchange Commission (SEC) has approved investment companies to list Bitcoin ETFs, making it easier for individuals to get exposure to the world’s largest cryptocurrency. This development may spell trouble for companies like Coinbase and MicroStrategy that are heavily invested in Bitcoin.

MicroStrategy is a software company that has shifted its focus to Bitcoin in recent years. Despite its unprofitable software segment, the company’s stock has surged over 250% in the last five years due to its Bitcoin holdings. However, the introduction of Bitcoin ETFs could disrupt this strategy.

Investors purchasing shares of MicroStrategy will find that they are paying a significant premium if they want exposure to Bitcoin, given the company’s market cap and net asset value. With new Bitcoin ETFs offering a much easier alternative, MicroStrategy shares may face challenges in 2024.

The Motley Fool Stock Advisor analyst team has identified 10 stocks for investors to buy now, and MicroStrategy wasn’t one of them. It is suggested to avoid investing in MicroStrategy due to the emergence of simpler and more accessible methods for gaining exposure to Bitcoin, such as through ETFs.



Read more: This Bitcoin News May Spell Trouble for MicroStrategy in 2024. Here’s Why