Tradiengwiew

-based MicroStrategy now holds a total of 125,051 bitcoins , valued at about $4.8 billion at the current bitcoin price of $38,700.

The upside outlook for MSTR appears as it continues to stay positively correlated to Bitcoin (BTC) , a highly volatile cryptocurrency propagated as “digital gold” by its hardcore enthusiasts. MicroStrategy owns 105,085 BTC worth around $5.23 billion as Bitcoin’s price returns to $50,000.2 Eyl 2021

With favorable conditions in the long run, MSTR will leverage up against the Bitcoins and lend it to a strong counterparty. MSTR’s net change in cash in Q3 2021 was $4.2 million after the company used up almost $400 million buying Bitcoins in 2021.

MicroStrategy will continue buying bitcoin this year , Mr. Le said, though it is unclear if it would buy more than it did last year; the company has no plans to sell the asset.

MSTR has a D grade for Quality . This is reflective of the stock’s weak profitability. The company has a Value grade of D, which reflects its premium valuation. Also, it has a D grade for Growth, in sync with its weak growth potential.

With its big treasure trove of bitcoin, MicroStrategy has essentially become a proxy for the cryptocurrency , with all the risks and opportunities that entails. Prior to buying bitcoin, the company had an enterprise value of less than $900 million.