Bitcoin Is A 'Beautiful House In A Scary Neighborhood' — MicroStrategy Is A 'Beautiful House With 10,000 Acres Of Ranch Land Behind It'
Portfolio Pulse from Adam Eckert
MicroStrategy Inc (NASDAQ:MSTR) purchased an additional 12,800 Bitcoin (CRYPTO: BTC) in Q2 for $361.4 million, bringing its total Bitcoin holdings to 152,800. Executive chairman Michael Saylor believes that investing in MicroStrategy is the best way to gain exposure to Bitcoin, as the company's operations provide diversification against Bitcoin's volatility and allow it to borrow money at low rates. Despite a recent dip in MicroStrategy's share price, Saylor does not see the potential approval of a Bitcoin ETF as a threat to the company.
August 04, 2023 | 1:34 pm
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NEUTRAL IMPACT
MicroStrategy's increased investment in Bitcoin and its ability to borrow money at low rates to grow its business could make it an attractive investment for those seeking exposure to Bitcoin. However, the company's share price may be affected by Bitcoin's volatility.
MicroStrategy's increased Bitcoin holdings and ability to borrow at low rates could make it an attractive investment. However, its share price could be affected by Bitcoin's volatility, which could deter some investors.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Bitcoin's price has been rallying in recent months, largely due to improved odds of a Bitcoin ETF getting approved. This could potentially impact the price of Bitcoin in the short term.
The potential approval of a Bitcoin ETF has been driving Bitcoin's price rally. If approved, this could further boost Bitcoin's price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100