MicroStrategy (MSTR) Is Walking A Tightrope By Using Leverage To Buy Bitcoin

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MicroStrategy (MSTR) Is Walking A Tightrope By Using Leverage To Buy Bitcoin

Insider Monkey12-21 00:14

In the past few months, there has been a lot of excitement surrounding MicroStrategy, but it is not because of its software. MicroStrategy has instead become the largest holder of Bitcoin and uses ...

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Guavaxf30
·11:01
Be careful of this MRTC. Is it highly volatile and the movement often does not reflect fundamentals. Friday's dramatic gains is not even in proportion of the recovery of Bitcoin. How then is this justified if Bitcoin is the basis of the value of MSTR? Another thing to consider. If Bitcoin should rise even more spectacularly, how will MSTR realise this except the convert their holdings of Bitcoin into US$. What happens when MRTC offloads a portion of their Bitcoin holdings? Will there be enough new buyers to but them to keep their prices from falling? But then again, the believe is there will always be new buyers coming to support. But isn't this dangerously playing a musical chair game?
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MicroStrategy has instead become the largest holder of Bitcoin and uses ...</p>\n\n<a href=\"https://finance.yahoo.com/news/microstrategy-mstr-walking-tightrope-using-161455966.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>MicroStrategy (MSTR) Is Walking A Tightrope By Using Leverage To Buy Bitcoin</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMicroStrategy (MSTR) Is Walking A Tightrope By Using Leverage To Buy Bitcoin\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-21 00:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/microstrategy-mstr-walking-tightrope-using-161455966.html><strong>Insider Monkey</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>In the past few months, there has been a lot of excitement surrounding MicroStrategy, but it is not because of its software. MicroStrategy has instead become the largest holder of Bitcoin and uses ...</p>\n\n<a href=\"https://finance.yahoo.com/news/microstrategy-mstr-walking-tightrope-using-161455966.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0225283273.USD","symbol_name":"SCHRODER ISF GLOBAL EQUITY ALPHA \"A\" (USD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/microstrategy-mstr-walking-tightrope-using-161455966.html","article_id":"2493424277","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/xHLIda3Ibo3eDVKllHMibg--~B/aD0xMDI0O3c9MTc5MjthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/insidermonkey.com/148a7fc3d4a56990c7101788f36d2286"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2493424277","pubTimestamp":1734711295,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"In the past few months, there has been a lot of excitement surrounding MicroStrategy, but it is not because of its software. 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MicroStrategy has instead become the largest holder of Bitcoin and uses that enormous holding to secure shareholder value. All said, as long as Bitcoin rises, so does the shareholder value, making MicroStrategy a somewhat unique bet on the crypto world.\nMicroStrategy Incorporated (MSTR) is an American company that specializes in business intelligence, mobile software, and cloud-based services. It was founded back in 1989 and the headquarters of the firm are located in Tysons Corner, Virginia. The powerhouse has advanced analytics capabilities combined with a robust emphasis on data-driven decision-making for business organizations. It offers services in enterprise analytics but has been focusing lately on the acquisition of Bitcoin.\n\nMicroStrategy's major product releases consist of its analytics platform: a data visualization, reporting, and dashboard offering. The firm provides cloud solutions, consulting services, and technical support to businesses wanting to implement and streamline analytics capabilities. Revenue is generated mainly from licensing fees from software, cloud subscription fees, consulting, and contracts for technical support. It serves a broad portfolio of customers, including retail enterprises, banks, healthcare companies, telecom agencies, and others. The end market consists of companies seeking to enhance their operations by harnessing data analytics.\nThe firm recently bought $1.5 billion worth of Bitcoin and could be adding to this as we speak. The total holding now stands at 439,000 BTC, which is valued at $42.5 billion currently. At one point, the firm's BTC holding value was close to $48 billion. The company now wants to use further leverage to buy more Bitcoin, but how much is enough for MSTR? And is it really that good an idea to use leverage to buy BTC? The company has already issued $6.2 billion in convertible debt this year and plans to carry on doing the same.\nInvestors are wondering if 'intelligent leverage', a term just coined by Chairman Michael Saylor, is a good thing or not. One can understand someone buying a house on leverage. It is a useful asset that would come in handy if one fell on hard times. But how is it justified to buy Bitcoin on leverage, when it is such a volatile asset and just like Gold, useless in rough times? Intelligent investors would know that whatever the math behind Bitcoin, the math behind risk will eventually come back to haunt them. As long as the Bitcoin rally keeps going, this could be a great stock to add to a portfolio. However, we are bearish on the long-term prospects of the company due to its leverage-based Bitcoin spending spree.\nMicroStrategy is not on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held MSTR at the end of the third quarter which was 26 in the previous quarter. While we acknowledge the potential of MSTR as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as MSTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.\nREAD NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.\nDisclosure: None. This article was originally published at Insider Monkey.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":384457956114992,"gmtCreate":1734836516484,"gmtModify":1734837493578,"author":{"id":"3576140222331577","authorId":"3576140222331577","name":"Guavaxf30","avatar":"https://static.tigerbbs.com/1ff15ff6aa254c9130f9af922f7e2447","vip":1,"crmLevel":9,"crmLevelSwitch":1,"idStr":"3576140222331577","authorIdStr":"3576140222331577"},"htmlText":"Be careful of this MRTC. Is it highly volatile and the movement often does not reflect fundamentals. Friday's dramatic gains is not even in proportion of the recovery of Bitcoin. How then is this justified if Bitcoin is the basis of the value of MSTR? Another thing to consider. If Bitcoin should rise even more spectacularly, how will MSTR realise this except the convert their holdings of Bitcoin into US$.&nbsp; What happens when MRTC offloads a portion of their Bitcoin holdings? Will there be enough new buyers to but them to keep their prices from falling? But then again, the believe is there will always be new buyers coming to support. But isn't this dangerously playing a musical chair game?","listText":"Be careful of this MRTC. Is it highly volatile and the movement often does not reflect fundamentals. Friday's dramatic gains is not even in proportion of the recovery of Bitcoin. How then is this justified if Bitcoin is the basis of the value of MSTR? Another thing to consider. If Bitcoin should rise even more spectacularly, how will MSTR realise this except the convert their holdings of Bitcoin into US$.&nbsp; What happens when MRTC offloads a portion of their Bitcoin holdings? Will there be enough new buyers to but them to keep their prices from falling? But then again, the believe is there will always be new buyers coming to support. But isn't this dangerously playing a musical chair game?","text":"Be careful of this MRTC. Is it highly volatile and the movement often does not reflect fundamentals. Friday's dramatic gains is not even in proportion of the recovery of Bitcoin. How then is this justified if Bitcoin is the basis of the value of MSTR? Another thing to consider. If Bitcoin should rise even more spectacularly, how will MSTR realise this except the convert their holdings of Bitcoin into US$. What happens when MRTC offloads a portion of their Bitcoin holdings? Will there be enough new buyers to but them to keep their prices from falling? But then again, the believe is there will always be new buyers coming to support. But isn't this dangerously playing a musical chair game?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/384457956114992","repostId":2493424277,"repostType":2,"repost":{"id":"2493424277","kind":"highlight","pubTimestamp":1734711295,"share":"https://ttm.financial/m/news/2493424277?lang=&edition=fundamental","pubTime":"2024-12-21 00:14","market":"us","language":"en","title":"MicroStrategy (MSTR) Is Walking A Tightrope By Using Leverage To Buy Bitcoin","url":"https://stock-news.laohu8.com/highlight/detail?id=2493424277","media":"Insider Monkey","summary":"In the past few months, there has been a lot of excitement surrounding MicroStrategy, but it is not because of its software. MicroStrategy has instead become the largest holder of Bitcoin and uses that enormous holding to secure shareholder value. All said, as long as Bitcoin rises, so does the shareholder value, making MicroStrategy a somewhat unique bet on the crypto world.MicroStrategy Incorporated  is an American company that specializes in business intelligence, mobile software, and cloud-based services. It was founded back in 1989 and the headquarters of the firm are located in Tysons Corner, Virginia. The powerhouse has advanced analytics capabilities combined with a robust emphasis on data-driven decision-making for business organizations. It offers services in enterprise analytics but has been focusing lately on the acquisition of Bitcoin.MicroStrategy is not on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held ","content":"<html><body><p>In the past few months, there has been a lot of excitement surrounding <a href=\"https://laohu8.com/S/MSTR\">MicroStrategy</a>, but it is not because of its software. MicroStrategy has instead become the largest holder of Bitcoin and uses that enormous holding to secure shareholder value. All said, as long as Bitcoin rises, so does the shareholder value, making MicroStrategy a somewhat unique bet on the crypto world.</p>\n<p>MicroStrategy Incorporated (MSTR) is an American company that specializes in business intelligence, mobile software, and cloud-based services. It was founded back in 1989 and the headquarters of the firm are located in Tysons Corner, Virginia. The powerhouse has advanced analytics capabilities combined with a robust emphasis on data-driven decision-making for business organizations. It offers services in enterprise analytics but has been focusing lately on the acquisition of Bitcoin.</p>\n<img height=\"1024\" src=\"https://s.yimg.com/uu/api/res/1.2/iPp9E0SIsUI_y0IZgtrOmA--/cT03NTthcHBpZD15dmlkZW9mZWVkczs-/https://media.zenfs.com/en/insidermonkey.com/148a7fc3d4a56990c7101788f36d2286\" width=\"1792\"/>\n<p>MicroStrategy's major product releases consist of its analytics platform: a data visualization, reporting, and dashboard offering. The firm provides cloud solutions, consulting services, and technical support to businesses wanting to implement and streamline analytics capabilities. Revenue is generated mainly from licensing fees from software, cloud subscription fees, consulting, and contracts for technical support. It serves a broad portfolio of customers, including retail enterprises, banks, healthcare companies, telecom agencies, and others. The end market consists of companies seeking to enhance their operations by harnessing data analytics.</p>\n<p>The firm recently bought $1.5 billion worth of Bitcoin and could be adding to this as we speak. The total holding now stands at 439,000 BTC, which is valued at $42.5 billion currently. At one point, the firm's BTC holding value was close to $48 billion. The company now wants to use further leverage to buy more Bitcoin, but how much is enough for MSTR? And is it really that good an idea to use leverage to buy BTC? The company has already issued $6.2 billion in convertible debt this year and plans to carry on doing the same.</p>\n<p>Investors are wondering if 'intelligent leverage', a term just coined by Chairman Michael Saylor, is a good thing or not. One can understand someone buying a house on leverage. It is a useful asset that would come in handy if one fell on hard times. But how is it justified to buy Bitcoin on leverage, when it is such a volatile asset and just like Gold, useless in rough times? Intelligent investors would know that whatever the math behind Bitcoin, the math behind risk will eventually come back to haunt them. As long as the Bitcoin rally keeps going, this could be a great stock to add to a portfolio. However, we are bearish on the long-term prospects of the company due to its leverage-based Bitcoin spending spree.</p>\n<p>MicroStrategy is not on our latest list of the 31 Most <a href=\"https://laohu8.com/S/BPOPN\">Popular</a> Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held MSTR at the end of the third quarter which was 26 in the previous quarter. While we acknowledge the potential of MSTR as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as MSTR but that trades at less than 5 times its earnings, check out our report about the <strong>cheapest AI stock</strong>.</p>\n<p><strong><b>READ NEXT:</b> <b>$30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley</b><b> and </b><b>Jim Cramer Says NVIDIA ‘Has Become A Wasteland’</b><b>.</b></strong></p>\n<p>Disclosure: None. This article was originally published at Insider Monkey.</p>\n</body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>MicroStrategy (MSTR) Is Walking A Tightrope By Using Leverage To Buy Bitcoin</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMicroStrategy (MSTR) Is Walking A Tightrope By Using Leverage To Buy Bitcoin\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-21 00:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/microstrategy-mstr-walking-tightrope-using-161455966.html><strong>Insider Monkey</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>In the past few months, there has been a lot of excitement surrounding MicroStrategy, but it is not because of its software. MicroStrategy has instead become the largest holder of Bitcoin and uses ...</p>\n\n<a href=\"https://finance.yahoo.com/news/microstrategy-mstr-walking-tightrope-using-161455966.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://s.yimg.com/uu/api/res/1.2/xHLIda3Ibo3eDVKllHMibg--~B/aD0xMDI0O3c9MTc5MjthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/insidermonkey.com/148a7fc3d4a56990c7101788f36d2286","relate_stocks":{"LU0225283273.USD":"SCHRODER ISF GLOBAL EQUITY ALPHA \"A\" (USD) ACC","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","BK4600":"加密货币概念","LU2089283258.USD":"安联环球可持续基金Cl AM Dis","LU1548497426.USD":"安联环球人工智能AT Acc","BK4127":"投资银行业与经纪业","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","BK4601":"加密货币现货ETF","LU2111349929.HKD":"ALLIANZ GLOBAL SUSTAINABILITY \"AM\" (HKD) INC","LU0795875169.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD-H","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","BK4516":"特朗普概念","BK4023":"应用软件","LU1732799900.SGD":"JPMorgan Investment Funds - Global Income A (irc) SGD-H","MSTR":"MicroStrategy","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4534":"瑞士信贷持仓","LU2271345857.HKD":"ALLIANZ GLOBAL SUSTAINABILITY \"AT\" (HKD) ACC","LU0267386448.USD":"FIDELITY FIRST ALL COUNTRY WORLD \"A\" (USD) INC","BK4585":"ETF&股票定投概念","BK4594":"比特币ETF概念","LU0106261372.USD":"SCHRODER ISF US LARGE CAP \"A\" ACC","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU2023251221.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"AM\" (USD) INC","LU0912757837.SGD":"JPMorgan Investment Funds - Global Income A (mth) SGD-H","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","BK4596":"哈里斯概念","BK4595":"比特币概念","LU1732800096.USD":"摩根大通环球收益基金A (irc)","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","LU2089284900.SGD":"Allianz Global Sustainability Cl AM Dis H2-SGD","LU2028103732.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"AMG\" (USD) INC","LU0158827781.USD":" ALLIANZ GLOBAL SUSTAINABILITY \"AT\" (USD) ACC","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","BK4581":"高盛持仓","LU0106831901.USD":"贝莱德世界金融基金A2","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","LU0795875086.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD","LU2347655156.SGD":"JPMorgan Investment Funds - Global Income A (icdiv) SGD-H","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","LU0006306889.USD":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/microstrategy-mstr-walking-tightrope-using-161455966.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2493424277","content_text":"In the past few months, there has been a lot of excitement surrounding MicroStrategy, but it is not because of its software. MicroStrategy has instead become the largest holder of Bitcoin and uses that enormous holding to secure shareholder value. All said, as long as Bitcoin rises, so does the shareholder value, making MicroStrategy a somewhat unique bet on the crypto world.\nMicroStrategy Incorporated (MSTR) is an American company that specializes in business intelligence, mobile software, and cloud-based services. It was founded back in 1989 and the headquarters of the firm are located in Tysons Corner, Virginia. The powerhouse has advanced analytics capabilities combined with a robust emphasis on data-driven decision-making for business organizations. It offers services in enterprise analytics but has been focusing lately on the acquisition of Bitcoin.\n\nMicroStrategy's major product releases consist of its analytics platform: a data visualization, reporting, and dashboard offering. The firm provides cloud solutions, consulting services, and technical support to businesses wanting to implement and streamline analytics capabilities. Revenue is generated mainly from licensing fees from software, cloud subscription fees, consulting, and contracts for technical support. It serves a broad portfolio of customers, including retail enterprises, banks, healthcare companies, telecom agencies, and others. The end market consists of companies seeking to enhance their operations by harnessing data analytics.\nThe firm recently bought $1.5 billion worth of Bitcoin and could be adding to this as we speak. The total holding now stands at 439,000 BTC, which is valued at $42.5 billion currently. At one point, the firm's BTC holding value was close to $48 billion. The company now wants to use further leverage to buy more Bitcoin, but how much is enough for MSTR? And is it really that good an idea to use leverage to buy BTC? The company has already issued $6.2 billion in convertible debt this year and plans to carry on doing the same.\nInvestors are wondering if 'intelligent leverage', a term just coined by Chairman Michael Saylor, is a good thing or not. One can understand someone buying a house on leverage. It is a useful asset that would come in handy if one fell on hard times. But how is it justified to buy Bitcoin on leverage, when it is such a volatile asset and just like Gold, useless in rough times? Intelligent investors would know that whatever the math behind Bitcoin, the math behind risk will eventually come back to haunt them. As long as the Bitcoin rally keeps going, this could be a great stock to add to a portfolio. However, we are bearish on the long-term prospects of the company due to its leverage-based Bitcoin spending spree.\nMicroStrategy is not on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held MSTR at the end of the third quarter which was 26 in the previous quarter. While we acknowledge the potential of MSTR as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as MSTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.\nREAD NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.\nDisclosure: None. This article was originally published at Insider Monkey.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":0,"commentSize":1,"repostSize":2,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}