MicroStrategy Company Profile
MicroStrategy Incorporated (MSTR) is a software company focused on business intelligence (BI) and analytics solutions. It provides a platform that allows businesses to analyze and present data for decision making. Its tools support data exploration, interactive dashboards, data visualization, and reporting capabilities. Before going public in 1988, MSTR secured fast food giant McDonald’s (MCD) as a major customer.
MicroStrategy adopts Bitcoin standards
MicroStrategy Chairman (and CEO) Michael Saylor has long been concerned that the financial system was expanding by up to 7% a year while inflation was rising at up to 2% a year. After thoroughly researching Bitcoin, Michael Saylor took the unprecedented and creative step of adopting the “Bitcoin Standard.” During the interview, Thaler argued: “What we (MSTR) were doing was flipping the balance sheet, floating on the sails of Bitcoin, the sails of cryptocurrencies, so to speak, and creating a liquidity and currency imbalance. When a system becomes active, we want it to float rather than sink in a pool of liquidity. ” MicroStrategy currently holds over $15 billion in Bitcoin, making it one of the world’s top holders.
bitcoin catalyst
Since adopting the Bitcoin Standard, MicroStrategy has transformed from a software company to a company that leverages Bitcoin proxies. So to understand where MSTR is going, you need to understand where Bitcoin is going. Below are four factors that are bullish on Bitcoin.
1. Bitcoin Seasonality and the “Uptober”: Historically, fall has been the best time to go long Bitcoin. Since 2010, October has averaged a strong 29.5% and November has averaged 37.9%.
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Image source: Glassnode, ETC Group
2. FTX Repayment: The FTX cryptocurrency exchange collapsed in 2022 after a severe “crypto winter.” However, in a twist of fate, Bitcoin and most crypto assets have increased significantly in value since then, reaching $16 billion for all customers in December. Many of these cryptocurrency enthusiasts reinvest their funds into Bitcoin, allowing the price to rise.
3. Bitcoin Halving: Bitcoin halving occurs every four years and reduces the reward for mining new Bitcoins by half. Past Bitcoin halvings led to triple-digit gains a year later. Bitcoin has remained relatively flat since its halving in April, but history is on the bulls’ side.
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Image source: TradingView
4. Bitcoin ETFs: Several spot Bitcoin ETFs approved in 2024, including Fidelity Wise Origin Bitcoin ETF (FBTC), Ark 21 Shares Bitcoin ETF (ARKB), and WisdomTree Bitcoin Fund (BTCW). Ta. These ETFs should further strengthen their adoption among asset managers. Individual investors who do not have a virtual currency account are also eligible. Meanwhile, the iShares Bitcoin ETF (IBIT), the most successful ETF ever launched, allows traders to trade options.
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MicroStrategy relative strength
MSTR hit a new 52-week high on Friday as volume increased. MSTR is not only strong compared to Bitcoin, but also relative to other crypto proxies such as Coinbase Global (COIN).
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Image source: Zacks Investment Research
Plus, as the old Wall Street adage goes, “The longer the base, the higher the space.” MSTR is moving away from its 7-month basic structure.
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Image source: TradingView
conclusion
Bitcoin has several bullish factors. MicroStrategy is the best way to participate in Bitcoin breakouts.
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