2024-06-18 08:34:25 ET
Summary
- In addition to being an IT play, MicroStrategy has been collecting Bitcoins for almost four years.
- If monetized, its crypto assets have the potential to confer to it a much higher value than revenues derived from software products.
- However, assigning a value based on Bitcoin comes with risks, and this is why it is also important to be equipped with an exit strategy.
- These risks emanate mostly from the miners adjusting to the post-halving landscape while facing high difficulty.
Since I last covered MicroStrategy ( MSTR ) in October 2020, it has gained 800%. Two reasons for being bullish were the benefits from digital transformation for its BI (business intelligence) software products and accumulating Bitcoins ( BTC-USD ). The chart below shows that it is up by more than 900% as Michael Sailors' company represented a viable option for investors wanting exposure to the cryptocurrency without needing to open a digital wallet account at one of the crypto exchanges, but things have changed....
Read the full article on Seeking Alpha
For further details see:
MicroStrategy: Upside Potential, But Wait For Miners To Adjust