As a seasoned analyst with over two decades of experience in the tech and finance industries, I have witnessed the rise and fall of numerous titans. However, MicroStrategy’s meteoric surge has left me genuinely astounded. The company’s audacious Bitcoin bet seems to be paying off handsomely, with its market cap threatening to surpass that of a venerable industry stalwart like Intel.
As a crypto investor, I’m thrilled to see that MicroStrategy’s (MSTR) market value has soared past the $100 billion mark, making it poised to eclipse even industry giants like Intel. This Bitcoin (BTC) champion is truly leading the charge in the digital asset world.
According to an analyst report recently shared with CryptoMoon, the stock is predicted to increase more due to the expectation that MicroStrategy’s Bitcoin purchases will quicken at a faster pace than initially thought by experts.
Based on Google Finance’s data, it’s clear that Intel, a long-established giant in the semiconductor industry with over 60 years of experience, currently boasts a market capitalization close to $102 billion, as of November 20th.
The crypto market experienced a boom after Donald Trump’s election as U.S. president, with some analysts suggesting that his presidency could be advantageous for the industry, according to CryptoMoon Research.
On November 20th, Microstrategy emerged as the most actively traded stock in America, outpacing heavyweights such as Tesla and Nvidia, as reported by Eric Balchunas, a Bloomberg Intelligence analyst.
On MicroStrategy’s October 30th earnings conference call, the company disclosed their intention to secure approximately $21 billion through equity and an additional $21 billion via debt. This funding is intended for a three-year investment plan, known as the “21/21 Plan,” which involves purchasing billions of dollars worth of Bitcoin.
In a recent email to CryptoMoon, Benchmark fintech analyst Mark Palmer stated that while MicroStrategy’s unconventional approach has drawn criticism from some, its significant influence on the company’s stock performance cannot be ignored. Indeed, over the past four years and a few months, MicroStrategy’s shares have consistently outperformed almost all major U.S. companies.
On October 31st, analyst Palmer increased his projected price for MSTR shares from $300 to $450 per share. He anticipates that Bitcoin could reach a value of $225,000 by the close of 2026.
According to a CNBC interview on November 15th, MicroStrategy’s executive chairman, Michael Saylor, suggested that the company might accelerate its rate of securities issuance and Bitcoin purchasing more quickly than initially planned, as stated by Palmer.
On November 19th, MicroStrategy revealed its biggest ever Bitcoin purchase, obtaining 51,780 Bitcoins for a total of $4.6 billion between November 11th and November 17th. As per Benchmark’s estimation, the company now holds roughly $40 billion worth of Bitcoin.
On its August 1st earnings call, MicroStrategy reinforced their dedication to Bitcoin investments by announcing the adoption of an exceptional evaluation standard: Bitcoin return on investment (ROI).
The Bitcoin yield indicates the relationship between Bitcoin holdings and the number of issued shares, thereby establishing the value of each share in terms of Bitcoins, which serves as a benchmark for corporate success.
Instead of comparing MicroStrategy’s (MSTR) stock market value with its net asset value, which many investors have been doing, Palmer suggests that a more insightful approach to evaluating the company’s worth is by considering its Bitcoin yield.
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2024-11-20 22:55