Latest news with #MSTR
Yahoo
3 hours ago
- Business
- Yahoo
This 1 Cryptocurrency Could Soar 20,000% Over the Next 21 Years, According to Michael Saylor of Strategy (MicroStrategy)
Billionaire Michael Saylor now thinks Bitcoin could hit a price of $21 trillion within 21 years. A significant boost in Bitcoin adoption by corporations and governments could lead to Bitcoin soaring in value by nearly 20,000%. At a price of $21 million, Bitcoin would be worth nearly 10 times the current value of the S&P 500. 10 stocks we like better than Bitcoin › On June 21, billionaire Michael Saylor, founder and executive chairman of Strategy (NASDAQ: MSTR) unveiled his latest price prediction for Bitcoin (CRYPTO: BTC): $21 million per coin. That's significantly higher than most mainstream Bitcoin predictions, which usually top out at around $1 million. A price of $21 million would require Bitcoin to soar in value by nearly 20,000%. It would be easy to dismiss this prediction as just a pie-in-the-sky fantasy, except for one important fact: Bitcoin is up an extraordinary 216,474,168% since it hit an all-time low of $0.05 back in July 2010. Back then, nobody could have possibly predicted that Bitcoin would reach its current price of $105,000. In a presentation ("The Power of 21") at a recent Bitcoin event in Prague, Saylor explained why he thinks Bitcoin will eventually hit a price of $21 million within the next 21 years. For one, Bitcoin has a capped lifetime supply of just 21 million coins. The capped lifetime supply introduces tremendous scarcity. This theoretically ensures that any significant increase in demand will send its price soaring. Secondly, Bitcoin is currently experiencing a period of rapid institutional adoption as investors race to add Bitcoin to their portfolios. If these investors decide to boost their crypto allocation by just a tiny amount, it could have a very significant impact on the price of Bitcoin. Finally, Bitcoin has emerged as a true gold alternative. Many investors now refer to Bitcoin as "digital gold." They view it as a long-term store of value and a potential hedge against inflation, just like gold. Putting all this together, Saylor thinks the path to $21 million is inevitable. If Bitcoin can grow at a steady rate of 29% per year for the next two decades, it can hit a price of $21 million by the year 2046. Last summer, at a Bitcoin event in Nashville, Saylor famously predicted that Bitcoin would hit a price of $13 million. At the time, Bitcoin was trading for just $65,000. Today, Bitcoin trades for $105,000 and now appears to have stronger tailwinds, thanks to the Trump administration's pro-crypto policies. In his "The Power of 21" presentation, Saylor specifically points out the new pro-crypto approach of the Trump administration, which has led to new euphoria around Bitcoin as an asset class. The White House has gone all-in on Bitcoin, even going so far as to establish a Strategic Bitcoin Reserve. While Saylor thinks that it will take 21 years for Bitcoin to hit $21 million, it's still a pretty incredible price target. Based on a Bitcoin coin supply of 21 million, that implies a future valuation of $441 trillion. By way of comparison, the S&P 500 is currently worth about $50 trillion. The total value of global investable assets is usually estimated to be around $250 trillion. So, you can see what needs to happen, right? Bitcoin needs to establish itself as the preeminent asset class in the world, and all global wealth must start to flow into Bitcoin. At some point within the next two decades, investors will need to boost their Bitcoin allocations from 1% to 100%. That's asking a lot of investors since it will require them to break one of the fundamental rules of investing: Always diversify your portfolio. Keep in mind, too, that Bitcoin has always been a very volatile asset, prone to boom-and-bust cycles. In order for Bitcoin to grow at a steady rate of 29% per year, investors have to assume that Bitcoin has finally broken out of this cycle. From here on out, it's upward only. Finally, keep this in mind: Saylor has a very real reason to promote a very high price for Bitcoin. His company Strategy is now the largest corporate holder of Bitcoin in the world. The company now holds 592,345 Bitcoins, equivalent to almost 3% of all the Bitcoin in the world. That's more Bitcoin than even the U.S. government holds. While the overall pace of Bitcoin adoption over the past year has been impressive, the math involved in Bitcoin hitting a price of $21 million requires a giant leap of faith. A more realistic price target might be $500,000 to $1 million. However, even if Bitcoin "only" grows by a multiple of 5x or 10x over the next decade, that would likely still make it among the top-performing assets in the world. Thus, I'm still long-term bullish on Bitcoin. However, I'm not as convinced as Saylor that Bitcoin's boom-and-bust days are fully behind it. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. This 1 Cryptocurrency Could Soar 20,000% Over the Next 21 Years, According to Michael Saylor of Strategy (MicroStrategy) was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 hours ago
- Business
- Yahoo
MSTR Expanding AI With Mosaic: Is the Stock Evolving Beyond Bitcoin?
MicroStrategy MSTR, doing business as 'Strategy,' has taken a significant step in expanding its AI capabilities with the general availability of Strategy Mosaic, an AI-powered Universal Intelligence Layer. This launch aligns with the company's shift toward cloud-first, subscription-based services and could contribute positively to revenue and earnings expectations by enhancing demand for its AI plans to scale its cloud offerings and deepen customer engagement. As enterprise demand for trusted, scalable AI infrastructure grows, the success of Mosaic may well determine the next chapter in MSTR's subscription-driven impact is already evident in the company's Subscription Services segment, which saw a 61.6% year-over-year increase in revenues, reaching $37.1 million in the first quarter of 2025. Mosaic complements this growth by allowing customers to integrate data from over 200 sources, automate semantic modeling and deliver AI-ready insights across tools like Power BI, Tableau and traditional one-time product licenses, Strategy's subscription offerings, now bolstered by Mosaic, deliver ongoing value through data governance, semantic consistency and integrated security. With Mosaic's AI-powered Studio, customers can dramatically speed up data preparation and metric creation using natural language, enhancing time-to-value and user adoption. These features are not just technological enhancements but also open doors for cross-selling within the cloud ecosystem. Riot Platforms RIOT is transforming its 600 MW of idle capacity into an AI and HPC hosting platform, targeting enterprise clients alongside its Bitcoin mining operations. Riot Platforms differentiates itself by offering physical AI compute infrastructure, positioning for long-term subscription revenues. While Strategy focuses on AI-enhanced analytics through its proprietary software suite, Riot Platforms competes by offering physical AI compute infrastructure. This strategic pivot underscores Riot Platforms' goal to become a major player in AI Holdings MARA is leveraging its advanced immersion-cooling tech and grid-responsive power control to enable co-located AI inference together with Bitcoin mining. The company is licensing its 2-phase immersion systems and collaborating with data-center operators. MARA Holdings positions itself as an AI infrastructure enabler. Unlike Strategy's focus on AI software analytics, MARA Holdings is building the physical backbone for AI deployments, highlighting a clear distinction in how both firms approach the AI opportunity. Shares of Strategy have gained 33.5% year to date compared with the Zacks Computer – Software industry's return of 13.5%. Image Source: Zacks Investment Research MSTR has a Value Score of F. It is currently trading at a Price/Book ratio of 3.21 compared to the sector's 9.94X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for MSTR's 2025 loss is currently pegged at $15.73 per share, unchanged over the past 30 days. The estimate suggests a steep year-over-year decline of 134.08%. Image Source: Zacks Investment Research MSTR stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report Riot Platforms, Inc. (RIOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Insider
a day ago
- Business
- Business Insider
U.S. Dollar Hegemony Expected to Support Strategy's (MSTR) Bitcoin Bet
Strategy (MSTR), previously known as MicroStrategy, effectively functions as a leveraged proxy for Bitcoin (BTC-USD), and as such, it introduces a high degree of volatility to any portfolio. While a growing macroeconomic narrative suggests that U.S. dollar hegemony may be weakening, my ongoing analysis does not support this view. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Investors considering MSTR should do so with the expectation of a bullish Bitcoin scenario under relatively stable macroeconomic conditions, not as a hedge against a collapse of the U.S. dollar. Bitcoin prices have been volatile throughout 2025, clawing back early losses to stand approximately at the same level as they did in January. Although crypto volatility is evident, I remain bullish on MSTR. USD Hegemony Remains Intact Despite Incremental Weakening As of 2024, the U.S. dollar remains the dominant currency, accounting for approximately 60% of global foreign exchange reserves, according to the International Monetary Fund (IMF). It also maintains dominance in global trade, representing roughly 80% of transactions, and comprises about 90% of foreign exchange market activity, reflecting unmatched liquidity and institutional trust. Given these factors, concerns about an imminent collapse of the U.S. dollar appear overstated. A more realistic scenario is one of gradual, potentially reversible erosion, especially as advancements in AI and robotics drive long-term GDP growth, which could help offset the fiscal pressures associated with rising federal debt. That said, we are witnessing a slow but steady diversification into alternative reserve assets, including the euro (EUR), Chinese renminbi (RMB), and gold. Some prominent investors interpret this trend as the early stages of a long-term structural shift away from dollar dominance. In this context, narratives can become self-fulfilling, especially if key stakeholders begin to more openly support the productivity gains associated with AI. A more optimistic outlook on technological progress could go a long way in restoring confidence in U.S. fiscal sustainability. Given that Strategy would likely benefit in a scenario where confidence in the dollar erodes, I remain cautious about projecting outsized returns based solely on that premise. However, should such a macro disruption occur, both MSTR and Bitcoin exhibit 'antifragile' characteristics—that is, they tend to gain value in periods of systemic stress or uncertainty. This quality is rare and potentially valuable. The key caveat is MSTR's high cyclicality; successful investment requires entering at a favorable valuation and either having a clear exit strategy or the conviction to hold through significant volatility. Strategy Stock Offers Cyclical Hyper-Growth Strategy's business model is based on issuing equity and convertible debt to finance Bitcoin acquisitions. The stock trades at a premium of around 100% of its Bitcoin holdings, in anticipation that the company will continue to leverage favorable financing conditions to expand its BTC reserves. Investors are essentially paying this premium because they expect Bitcoin holdings per share to increase in the future, and they're also betting on management's ability to execute BTC acquisitions at well-timed valuations. There are no direct competitors with a comparable trajectory to Strategy, so its best sector comparison is with BTC itself. The company also has a Software segment, but this has become marginal to the broader BTC-accumulation strategy we're currently witnessing. In Q1 2025, the segment achieved $111 million in total Software revenue, a 3.6% decline compared to Q1 2024, according to Main Street Data. In contrast, in June, Strategy's Bitcoin holdings increased to 592,345 BTC, with a market value exceeding $63.5 billion at $ 107,000 per BTC. MSTR's GAAP earnings per share are currently -$16.49 as of the last earnings report, but this reflects the impact of legal fair-value rules on losses from unrealized Bitcoin positions. This mark-to-market hit, affecting hundreds of thousands of BTC, is what dominates the company's consolidated earnings. However, this is not a reliable gauge for the company's long-term return prospects, as Bitcoin's price is cyclical and highly volatile, meaning these periodic losses are inherent to the return horizon MSTR has embarked upon. Beware of the Halving Cycle Upending Near-Term Returns Bitcoin most predictably rallies based on halving cycles, and the last one was on April 20, 2024. This reduced the mining reward from 6.25 BTC to 3.125 BTC per block. These halvings enforce BTC scarcity, thereby strengthening its value. Historically, halvings have been catalysts for long-term price appreciation, often accompanied by a substantial pullback period. We'll be nearing the peak of sentiment in 2026, so buying MSTR stock now is a 12-month trade with heavy volatility risk on the horizon. Is MSTR Stock a Good Buy? On Wall Street, Strategy stock has a consensus Strong Buy rating from top analysts, based on 12 Buys, zero Holds, and one Sell. MSTR's average stock target price is $524.92, indicating a 35% upside potential over the next 12 months. This suggests that, despite the cyclical nature of the investment, which remains inevitable, the upside in the immediate future is likely to be substantial. Strategy Stock Is a Strong Investment, for Now While some view MSTR as a tactical hedge against a potential collapse of the U.S. dollar, such a scenario remains highly improbable given the current structural strengths of the U.S. economy, particularly with emerging tailwinds from AI and robotics innovation. In the near term, I'm bullish on MSTR due to favorable sentiment cycles surrounding Bitcoin; however, a cyclical downturn appears likely. For long-term investors seeking leveraged exposure to Bitcoin, such a pullback may offer the most attractive opportunity for accumulation.
Yahoo
2 days ago
- Business
- Yahoo
MicroStrategy (MSTR) Laps the Stock Market: Here's Why
MicroStrategy (MSTR) ended the recent trading session at $377.02, demonstrating a +2.68% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 1.11% for the day. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 1.43%. Coming into today, shares of the business software company had lost 0.63% in the past month. In that same time, the Computer and Technology sector gained 5.67%, while the S&P 500 gained 3.92%. Analysts and investors alike will be keeping a close eye on the performance of MicroStrategy in its upcoming earnings disclosure. On that day, MicroStrategy is projected to report earnings of -$0.12 per share, which would represent year-over-year growth of 84.21%. At the same time, our most recent consensus estimate is projecting a revenue of $112.15 million, reflecting a 0.64% rise from the equivalent quarter last year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$15.73 per share and revenue of $466.5 million. These totals would mark changes of -134.08% and +0.66%, respectively, from last year. It is also important to note the recent changes to analyst estimates for MicroStrategy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. MicroStrategy is currently sporting a Zacks Rank of #3 (Hold). In terms of valuation, MicroStrategy is presently being traded at a Forward P/E ratio of 50.3. This signifies a premium in comparison to the average Forward P/E of 25.34 for its industry. The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 27, this industry ranks in the top 11% of all industries, numbering over 250. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Insider
2 days ago
- Business
- Business Insider
Michael Saylor's Strategy Has a '91% Chance' at S&P 500 Glory, If Bitcoin Behaves
Michael Saylor's Strategy (MSTR) is closing in on something Wall Street never expected from a Bitcoin-heavy company: inclusion in the S&P 500. According to financial analyst Jeff Walton, there's a 91% chance the firm will qualify by the end of Q2 — if Bitcoin holds the line above $95,240. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Why that level matters: S&P 500 entry requires companies to post positive earnings across the last four quarters. MSTR has posted losses in the last three. But under new accounting rules, the firm now marks its Bitcoin at market value — meaning if BTC stays high, Strategy's Q2 earnings could flip positive, and the company becomes eligible. It All Rides on Bitcoin Holding the Line Bitcoin was trading at $106,200 as of publication. That gives Saylor breathing room, but not much. Walton's analysis found that since 2014, Bitcoin has dropped more than 10% over a six-day span just 8.7% of the time, meaning there's a strong statistical chance the price will hold above $95K into the June 30 deadline. Every day that passes without a crash increases Strategy's odds: 5 days left: 92.4% chance BTC doesn't drop 10% 4 days left: 93.4% 3 days: 94.5% 2 days: 95.8% 1 day: 97.6% So long as Bitcoin stays strong, Strategy's quarterly earnings turn green, and the S&P gate swings open. S&P 500 Braces for Another Crypto Entrant If it happens, Strategy would be the second crypto-related company to join the S&P 500 this year, after Coinbase's addition in May. For crypto evangelists, it's not just a win for Saylor — it's a step toward full financial system legitimacy. 'This cements the legitimacy of an entire asset class,' said Bitpace CRO Meryem Habibi, summing up what many in the industry are thinking. It would also mark Strategy's second major index addition, following its entry into the Nasdaq-100 in December 2024. But a Shock to Bitcoin's Price Could Still Derail It All A sudden drop in Bitcoin, especially from geopolitical tensions or macro shocks, could still spoil the party. Just last weekend, fears around Iran-Israel conflict knocked BTC below $100K for the first time since May. If BTC closes below $95,240 by June 30, Strategy's Q2 earnings won't be enough. That would push its S&P eligibility back at least another quarter. What This Means for Strategy Stock Strategy's stock has long traded as a high-volatility proxy for Bitcoin, and investors have rewarded it. The firm holds over 592,000 BTC, more than any other public company. S&P 500 inclusion could bring an influx of institutional money. Index funds would be required to buy MSTR, and the added credibility could give its shares a premium beyond just Bitcoin's price. But it also puts Strategy more squarely in Wall Street's crosshairs. Higher scrutiny, tighter reporting, and more macro exposure may challenge Saylor's vision of a Bitcoin treasury fortress. Is MicroStrategy a Good Stock to Buy? MicroStrategy, now rebranded as Strategy, has drawn strong support from Wall Street analysts. According to TipRanks, the stock holds a Strong Buy rating. 12 out of 13 analysts currently call it a Buy, with just one lone Sell and zero Hold ratings. The average 12-month MSTR price target sits at $524.92—implying a 39.2% upside from the recent close.
