From Nasdaq: 2024-03-29 16:49:00

Shares of MicroStrategy (NASDAQ: MSTR) rose 11.9% this week as investors bet on a bright future tied to Bitcoin, pushing the stock up 500% in the past year.

MicroStrategy’s entire business strategy involves using debt to buy Bitcoin, with the company’s market cap close to $30 billion after raising $600 million in convertible notes recently.

Professional investors see MicroStrategy as overvalued compared to the actual value of Bitcoins it holds, prompting some to short the stock while getting long on Bitcoin with ETFs offering a cheaper way to invest in cryptocurrency.

While MicroStrategy has done well, it remains purely a bet on Bitcoin with better options available for investors, making it advisable to stay away from the stock for now. The Motley Fool Stock Advisor team did not include MicroStrategy in their list of 10 best stocks to buy now.

Read more at Nasdaq.: Why MicroStrategy Stock Moved Higher Again This Week