Latest news with #Strategy
Yahoo
8 hours ago
- Business
- Yahoo
Vanguard Is Now the Top Investor in MicroStrategy Stock. Should You Buy MSTR Too?
In a surprising turn of events, Vanguard has emerged as the largest institutional shareholder of MicroStrategy (MSTR), holding 20.5 million shares worth approximately $9.26 billion, representing 8.55% ownership of the company. This development marks a shift for the world's second-largest asset manager, which previously dismissed Bitcoin (BTCUSD) as 'an immature asset class.' The investment positions Vanguard as the top holder in MicroStrategy, the world's largest publicly listed corporate Bitcoin holder, with 601,550 Bitcoin valued at $74 billion. More News from Barchart Is Palantir Stock a Buy Above $150? Coinbase Stock Just Hit a New 52-Week High. How Much Higher Can Crypto Week Take COIN? This Bullish Catalyst for Nvidia Stock Is Coming in September Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Vanguard has previously criticized Bitcoin, with executives calling the cryptocurrency 'speculative' and warning that it could create portfolio 'havoc.' While competitors like BlackRock (BLK) and Fidelity launched spot Bitcoin ETFs in January 2024, Vanguard notably abstained from the crypto rush. The firm maintained its stance even as Bitcoin reached an all-time high of $123,000 earlier this month. Additionally, Vanguard CEO Salim Ramji recently reaffirmed that the company doesn't make bets on 'speculative assets,' such as Bitcoin. This quiet accumulation of MicroStrategy shares suggests Vanguard may be gaining indirect Bitcoin exposure while maintaining its public skepticism toward direct cryptocurrency investments, highlighting the complex dynamics between traditional asset managers and digital assets. Is MSTR Stock a Good Buy Right Now? Strategy, formerly known as MicroStrategy, has become the poster child for Bitcoin treasury companies. Over the last five years, MSTR stock has surged more than 3,700%, outpacing the nearly 1,200% returns of Bitcoin. This remarkable outperformance stems from Strategy's aggressive Bitcoin accumulation strategy, which began in August 2020. Strategy now holds more than 600,000 BTC on its balance sheet, making it the world's largest corporate Bitcoin holder by a wide margin. Executive Chairman Michael Saylor has transformed the software company into what he calls 'the world's first Bitcoin treasury company.' Strategy's success has sparked a wave of imitators. Even failing businesses are pivoting to Bitcoin treasury strategies, hoping to revitalize their stock prices through exposure to cryptocurrency. However, this approach carries significant risks. For instance, Strategy employs debt and leverage to acquire Bitcoin, creating what some analysts describe as an ultra-leveraged Bitcoin fund. This approach only works when Bitcoin prices rise, interest rates remain manageable, and market sentiment stays positive. Is MSTR Stock Overvalued Right Now? Out of the 13 analysts covering MSTR stock, 11 recommend 'Strong Buy,' one recommends 'Moderate Buy,' and one recommends 'Strong Sell.' The average MSTR stock price target is $543.62, 27% above the current price. With Bitcoin currently priced near $120,000 acquiring meaningful positions becomes increasingly expensive, which will create a cycle of dilutive stock offerings. While Strategy has delivered exceptional returns, investors should consider whether direct Bitcoin exposure through spot ETFs might offer similar upside with fewer operational risks and complications. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
a day ago
- Business
- Yahoo
Is Investing in a Bitcoin Treasury Company a Millionaire-Maker Strategy?
Key Points Bitcoin treasury companies such as Strategy have shown the ability to outperform Bitcoin for extended periods of time. A strategy of using debt and leverage to buy Bitcoin only works when its price is rising and the cost of capital is relatively low. Over the long haul, investing in the crypto directly is less risky than investing in a Bitcoin treasury company. 10 stocks we like better than Strategy › New Bitcoin (CRYPTO: BTC) treasury companies are being launched left and right. They are all trying to emulate the success of Strategy (NASDAQ: MSTR), the company formerly known as MicroStrategy, which now has an impressive track record of outperforming Bitcoin. Case in point: Strategy stock is up 50% this year, while Bitcoin is up 30%. Imagine being able to capture that level of outperformance year after year. In theory, investing in a Bitcoin treasury company such as Strategy will speed up your timeline to becoming a millionaire. But is that really the case? The track record of Strategy To answer that question, it's important to examine the track record of Strategy to understand just how big the performance gap has been over the past few years. The numbers really are incredible. Here's a side-by-side comparison of Strategy and Bitcoin, starting from August 2020. That's when Strategy started its Bitcoin buying spree. At a glance, it becomes obvious that sometime around January 2024, investing in Strategy became a better buy than investing in Bitcoin. Over the past five years, Strategy is up 3,422%. In comparison, Bitcoin is "only" up 940%. So you can start to see why some people are now referring to Strategy as a potential millionaire maker. At the same time, multimillionaires are now launching their own Bitcoin treasury companies in the hope of becoming billionaires. The secret to outperforming Bitcoin By now, you're probably wondering: "OK, so what's the catch?" This just seems too easy. Maybe money really does grow on trees. Here's the catch: Companies like Strategy are using a mix of debt and leverage to outperform Bitcoin. Some have referred to them as ultra-leveraged Bitcoin funds. This strategy only works when the crypto's price is rising, the cost of capital is relatively cheap, and market sentiment is positive. That describes the situation we're in now. In November, the price of Bitcoin was $69,000. Today, it's $122,000. Interest rates are no longer near zero, but they are still relatively low from a historical perspective, so the rates that companies must pay on their debt is also relatively low. And market sentiment, emboldened by all the pro-crypto moves of the Trump administration, is also positive right now. Some even think that the digital coin is about to go on an epic bull-market run that will take it to $200,000 by the end of the year. But what if all this changes? The ability to raise new money to buy more Bitcoin is only possible if its price continues to move up. Moreover, if financing costs rise, then that imposes an even greater burden on these Bitcoin treasury companies to keep the flywheel going. In a worst-case scenario, they might need to sell some of their tokens to make scheduled payments. A Bitcoin treasury company bubble? It's getting to the point where CNBC has warned this could be a bubble in the making: "The rush into Bitcoin treasuries -- inflated by cheap capital, yield promises, and brand name endorsements -- is starting to resemble a bubble." This comes after an unprecedented amount of capital has been raised to buy Bitcoin this year. Nearly every week, it seems, some new company is being launched out of nowhere and announcing a plan to buy hundreds of millions of dollars' worth of the crypto. It's becoming hard to keep track of how many companies are now transforming into Bitcoin treasuries. There are pure plays on this idea, such as Strategy, that do nothing but buy and hold Bitcoin. There are hybrid treasury companies, which are now amassing huge amounts of it to complement other business operations. And then there are the treasury companies that claim to have plans to do things with all of that cryptocurrency on their balance sheet, such as creating new Bitcoin lending products for consumers. What has me concerned right now is that some publicly traded companies with failing business models are also embracing the digital coin. They are obviously facing pressure from shareholders to turn things around, so they are transforming into hybrid Bitcoin treasury companies. As long as the price continues to go up, then this makes sense from a shareholder value perspective. However, some analysts have compared this new mania to the dot-com mania. Should you buy Bitcoin or a Bitcoin treasury company? So buyer beware. If you are going to invest in a Bitcoin treasury company, make sure you understand the risks involved. The best companies are those that have a significant cash cushion and as little debt as possible, in case the crypto's price heads south. Remember: These companies typically have no core operating business to produce cash flow. They depend on continually tapping the capital markets for more money, to support their buying habit. In the short term, I can see how an investment in one of these new treasury companies could speed up the path to becoming a millionaire. But over the medium to long term, I still think holding Bitcoin directly is the ultimate millionaire-maker strategy. There are fewer variables to worry about, and less that could possibly go wrong. Do the experts think Strategy is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Strategy make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 179% for the S&P — that is beating the market by 881.02%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. Is Investing in a Bitcoin Treasury Company a Millionaire-Maker Strategy? 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
a day ago
- Business
- Yahoo
Strategy Hits Record $128.5B Market Cap as Bitcoin Buying Prompts Equity Sales
Strategy (MSTR), the bitcoin (BTC)-buying software company led by Michael Saylor, posted a record market capitalization as it engages in a multiyear transformation funded largely through aggressive equity issuance. The $128.5 billion market cap makes the Tysons Corner, Virginia-based company the 84th largest publicly traded company in the U.S. This rise from a sub-$2 billion market cap in five years underscores how the firm has redefined itself as the most prominent corporate bitcoin holder in public markets. Since 2020, the number of shares outstanding has almost tripled to 281.9 million, reflecting not only organic growth, but also a 10-for-1 stock split in August 2024 and the extensive use of at-the-market (ATM) equity programs. The count includes all Class A and Class B common shares, as well as stock sold via ATM offerings and those pending issuance from exercised options, vested restricted stock units (RSUs) and convertible note conversions. In October, Strategy announced a three-year $42 billion capital-raising plan comprising both equity and fixed-income instruments. That followed a $21 billion fundraise in the third quarter. The capital raised was primarily used to purchase bitcoin, enabling the company to build a treasury of 601,550 BTC, currently worth over $70 billion. The strategy has turned MSTR, in effect, into a leveraged, corporate bitcoin vehicle with equity-like features. The common stock trades at $455.90, some 15% below its November 2024 high. Investors continue to support the company's strategic vision, drawn by its role as a liquid, high-beta proxy for bitcoin exposure. The company's Assumed Diluted Shares Outstanding stands at 315.1 million, incorporating all possible conversions from convertible debt, preferred stock, options, and performance awards.
Business News Wales
a day ago
- Business
- Business News Wales
Decarbonisation Delivery ‘Must Catch Up with Strategy'
Senior figures across Wales' decarbonisation and industrial sectors are calling for greater urgency and clearer accountability in moving from strategy to delivery. With the publication of the UK Government's Industrial Strategy welcomed as a step forward, industry leaders involved in the Celtic Freeport initiative say the challenge now lies in ensuring that ambition is matched with action particularly around infrastructure, investment and coordinated delivery. Speaking on the Celtic Freeport: Unlocking Opportunity podcast, Ben Burggraaf, CEO of Net Zero Industry Wales, said there is a strong business case for investment in South Wales, but warned that the next phase must be underpinned by clear governance and a joined-up approach. 'We need to be clear about who is going to deliver what,' said Ben. 'We talk about industrial strategy zones and action plans, but who owns them, who drives them, and who is accountable for delivering the infrastructure and investment we need? These are large-scale capital programmes. It needs proper structure and governance to actually deliver.' Ben pointed to analysis showing the potential for £36 billion of investment over 25 years, generating an estimated £29 billion in GVA. But he said investment of that scale would only materialise if supported by certainty, coordination, and a strong partnership between government and the private sector. The Celtic Freeport, which includes the ports of Milford Haven and Port Talbot, is viewed by many as a key vehicle to drive industrial decarbonisation and clean energy transition across South Wales. Together, the area accounts for over 70% of Wales' industrial emissions, meaning progress here could have significant national impact. Luciana Ciubotariu, CEO of Celtic Freeport, said the priority now must be on accelerating delivery, particularly for emerging technologies such as floating offshore wind, sustainable fuels, hydrogen , and carbon capture. 'We need to be much more coordinated and faster in planning and permitting,' said Luciana. 'Currently it's fragmented across multiple agencies, which causes delays and uncertainty. Investors need to see a stable policy environment, with mechanisms that give them confidence their investments will be supported over time.' Luciana also emphasised the importance of practical steps such as upgrading the electricity grid, developing hydrogen-ready infrastructure, and ensuring local communities and skills providers are brought into the transition. Aled Davies, Marine Superintendent at Dragon LNG, echoed the call for clarity around responsibility and next steps. He said the Freeport initiative provided a strong platform for integrating traditional energy infrastructure with new low-carbon projects, but that delivery would depend on coordinated action. 'We've got everything lined up,' said Aled. 'The dominoes are ready to fall, but we need the right people around the table making the right decisions. Let's get the spotlight on South Wales and get these projects across the line.' He highlighted the importance of bridging investment to support existing industries while new technologies and infrastructure are developed. Dragon LNG, which currently supplies up to 10% of the UK's gas demand, is investing in on-site renewable energy and working with partners on a carbon capture initiative. Aled described these efforts as an example of how traditional energy can sit alongside the transition to renewables. Ben added that the Freeport should also play a role in giving industries across the region greater visibility on future opportunities. This, he said, would help build the confidence needed to invest in manufacturing capacity, supply chains, and long-term skills development. He said: 'My key ask for government is: who works with the private sector and who is actually going to put a name on the list saying 'I'm going to be accountable and responsible for delivering these very ambitious and large infrastructure projects'? That's the way we should see it.' Listen to the discussion in the Celtic Freeport: Unlocking Opportunity podcast episode How the Celtic Freeport is Powering Regional Decarbonisation here
Economic Times
a day ago
- Business
- Economic Times
Bitcoin to explode like Dogecoin in 2021? Bold prediction says it will be life-changing
Bitcoin advocate Udi Wertheimer has revealed that Bitcoin could be on the verge of a life-changing rally—something even bigger than Dogecoin's historic surge in 2021 and he believes the signs are already here, as per a made a comparison between BTC and DOGE, pointing out that Bitcoin is entering an explosive bull run, which is similar to what happened with Dogecoin in 2020–2021, as reported by Benzinga. In a social media X (previously Twitter) post this week, Wertheimer explained that Bitcoin's rise is not just about price, as legacy crypto holders are being replaced by institutions, ETFs and treasuries like Strategy, which are accumulating without regard for past valuations, as reported by Benzinga. ALSO READ: This little-known stablecoin just surged 337%, and it's turning heads in the business world He highlighted that this move is similar to Dogecoin's explosive 200x rally in 2020–2021, which was when old holders sold early, while new buyers, unaware of past price ceilings, kept accumulating until a sudden supply shock triggered massive upside, according to the Benzinga report. That led to a supply shock and sent Dogecoin increasing from fractions of a penny to $0.70 in 2021, which was a 200x move, as per the report. Wertheimer emphasised that Bitcoin is not only following the same path, but it is on a much grander scale, according to the Benzinga BTC advocate has cautioned his followers on X that the current consolidation phase isn't the top, it's the reset before liftoff, as per the report. He pointed out that the new institutional buyers, like those through ETF flows like IBIT, are not concerned with technical ceilings, because to them, Bitcoin at $110,000 is still cheap, especially when compared to other asset classes, as reported by to the report, Wertheimer's base case is entering the first phase of a truly generational bull run, expecting a top of $400,000 by the close of 2025. He warned that just like Dogecoin's old holders missed the bulk of the rally, even today's sidelined Bitcoiners may watch this run from the rearview mirror, unless they act now, as reported by Benzinga. ALSO READ: AI stocks in bubble trouble - are Nvidia, Microsoft in danger? Economist says it's worse than the Dot-Com crash of 1999 Wertheimer even said that Ethereum will be the biggest loser of this cycle as it will be weighed down by long-term holders and underwhelming performance compared to Bitcoin, according to the report. He also pointed out that Strategy's valuation could reverse Ethereum's, which could lead to a shift in crypto capital concentration, as reported by is Udi Wertheimer comparing Bitcoin to Dogecoin?Because both saw early holders sell too soon, while new buyers drove up prices. He thinks Bitcoin is now entering a similar, larger-scale phase, according to the report. What does Udi Wertheimer think will happen to Bitcoin's price? He predicts a rally that could send Bitcoin to $400,000 by the end of 2025, as per the Benzinga report.
