Key points
- MicroStrategy is a pioneer in business intelligence (BI) software, which makes up $695.34 of its $1,523 stock price, leaving its bitcoin holdings at $827.65 per share.
- The company is widely known mostly for its bitcoin holdings estimated at $14 billion, which it continues to acquire more through debt financing.
- MicroStrategy acquired an additional 9,245 Bitcoins for $623 million between March 11, 2024 and March 18, 2024, for an estimated total of 214,246 Bitcoins or just over 1% of the total supply.
- 5 stocks we like better than MicroStrategy
MicroStrategy Inc. NASDAQ:MSTR stocks have been synonymous with and correlated with bitcoin spot prices. MSTR stock has attracted attention, making headlines not for its core computing and technology business as an operator and developer of business intelligence (BI) software solutions, but rather as a bitcoin holder that uses the cryptocurrency as a reserve asset of the Treasury.
Its enigmatic executive chairman is a staunch supporter of Bitcoin and continues to acquire more and more of it. In fact, MicroStrategy has become the largest bitcoin holding company with 214,246 bitcoins as of March 19, 2024, at an average price of $33,706, now worth an estimated $14.07 billion. Investors must wonder whether MicroStrategy has overleveraged its future with Bitcoin.
Who are the largest holders of Bitcoin?
The largest holder of Bitcoin is the Grayscale Bitcoin Confidence NYSEARCA: GBTC, which holds 355,759 bitcoins worth $23.3 billion and 1,694% of the total supply. THE iShares Bitcoin Trust NASDAQ: GO it owns 239,253 bitcoins worth $15.7 billion, holding 1,139% of the total supply. MicroStrategy is the third largest bitcoin holder, with 214,246 bitcoins worth $14.07 billion and 1.02% of the total supply.
Marathon Digital Holdings Inc. NASDAQ: MARA is the largest holder of bitcoin miners, with 16,930 bitcoins worth $1.11 billion and 0.081% of the total supply. The second largest miner is Hut 8 Co. NASDAQ: HUTwith 9,110 bitcoins worth $597.8 million and 0.043% of the total supply.
MicroStrategy isn’t the only public company that loves Bitcoin
MicroStrategy is the public company with the largest equity stake in bitcoin, but it’s not alone. Tesla Inc. NASDAQ:TSLA owns 9,720 bitcoins worth $637.3 million and 0.046% of the total supply. Coinbase Global Inc. NASDAQ: MONEY owns 9,000 bitcoins worth $590 million and 0.043% of the total supply. Block Inc. NASDAQ: mq owns 8,027 bitcoins worth $526.3 million and 0.038% of the total supply.
And don’t forget about Bitcoin ETFs. These funds own the most bitcoins, with 1,000,564 worth $65.66 billion and 4.765% of the total supply of 21 million bitcoins.
MicroStrategy’s latest earnings report
MicroStrategy reported fourth-quarter 2023 EPS of $5.62, beating consensus analysts’ estimates of a loss of 21 cents by $5.41. Revenue fell 6% year-over-year to $124.5 million, missing consensus estimates of $7.7 million. The company reported acquiring 31,755 bitcoins since the third quarter of 2023 for $39,411 per bitcoin as of February 5, 2024. Total bitcoin holdings as of February 5, 2024 stood at 190,000 bitcoins.
CEO Insights
MicroStrategy CEO Phong Le commented: “2023 was a remarkable year for MicroStrategy as we strategically raised capital to significantly increase our bitcoin holdings and continued to innovate, including developing and launching MicroStrategy AI, our first AI-based BI tool on the market.”
Le continued: “We achieved double-digit subscription services revenue growth for both the fourth quarter and the full year, demonstrating our continued commitment to moving our business to the cloud. We believe the combination of our operational, Bitcoin strategy and focus on technological innovation offers a unique opportunity to create value for our shareholders.”
How much is the business worth?
MSTR has a market capitalization of $25.85 billion at a price of $1,523 per share. However, its bitcoin holdings have a market capitalization of $14.07 billion as of March 23, 2024. Since bitcoin prices trade around the clock, that market capitalization will change by the minute . Having surpassed Bitcoin’s market capitalization, MicroStrategy’s business is valued at approximately $11.8 billion. With 16.97 million shares outstanding, MicroStrategy’s business is equivalent to about $695.34 of the $1,523 share price, and the remaining $827.65 is the value of its bitcoin holdings.
MicroStrategy analyst ratings and price targets I’m on MarketBeat. MicroStrategy peers and competitor stocks can be found with MarketBeat Stock Screener.
Daily bull flag template setting
The daily candlestick chart on MSTR illustrates a potential bullish flag breakout setup pattern. The flagpole formed during its parabolic rise from swing lows of $451.03 on January 23, 2024, peaking at $1,815 on March 15, 2024. The bullish flag included lower highs and lower lows in a parallel channel formed subsequently, with a potential breakout above $1,600. The daily relative strength index (RSI) is retesting the 60 band for a possible slide lower. The pullback support levels are at $1,230, $1,035, $890.00, and $806.78.
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