MicroStrategy Incorporated (MSTR) Hoarding Bitcoin Like There’s No Tomorrow
We recently published a list of 10 Companies Hoarding Bitcoin Like There’s No Tomorrow. In this article, we are going to take a look at where MicroStrategy Incorporated (NASDAQ:MSTR) stands against other companies hoarding bitcoin like there’s no tomorrow.
Cryptocurrencies have been surging since the beginning of the year. After a small drop in January, Bitcoin has been on an upward trajectory and hasn’t looked back since. The asset is up over 141% year-to-date as of December 17 as it reached its record highs of over $108K before dropping down to nearly $107K today. President-elect Donald Trump’s win has also been significantly impactful on the asset’s price as Trump has been crypto-friendly so far, including his proposal for a “national Bitcoin stockpile.”
The New York Times reported that Eric Trump attended the Bitcoin MENA 2024 conference in Abu Dhabi, where he emphasized his family’s strong backing of cryptocurrency, alongside his father’s presidency, which he claimed would be the most “pro-crypto” in U.S. history.
As Bitcoin gains traction as a reserve asset for governments and central banks, its adoption continues to grow, with institutions and corporations playing a key role in this transformation. The collaboration between traditional financial entities and established crypto companies signals a significant shift in the market.
In a CNBC interview, Alessio Quaglini, CEO and co-founder of Hex Trust, discussed the next phase of Bitcoin adoption, which will begin when governments and central banks start using Bitcoin as a reserve asset. This shift, once unthinkable, is becoming a reality as some governments already hold crypto assets, often due to enforcement actions. Quaglini believes that when governments proactively purchase Bitcoin, which has a limited supply, it will significantly transform the crypto market, surpassing the current institutional adoption phase.
He also addressed the growing competition in the crypto space, particularly from traditional financial institutions. Quaglini emphasized that while these institutions are entering the market, many prefer to collaborate with established digital asset companies rather than operate independently. This partnership trend is beneficial, as it leverages the expertise and infrastructure of digital asset firms to offer crypto services to clients.
Looking ahead to 2025, Quaglini foresees a structural shift in supply and demand driving Bitcoin’s price trend, estimating a 5-10% quarterly appreciation. Key drivers for this growth will include institutional adoption, with companies like MicroStrategy continuing to buy Bitcoin, and the addition of the company to the Nasdaq-100, which will integrate Bitcoin more deeply into mainstream finance. Quaglini views this as a major event that will open the door for digital assets to gain even broader acceptance, especially as part of corporate asset allocations.
Our Methodology
For this article, we scoured the internet to find companies listed on NYSE and NASDAQ holding Bitcoin and found their total holdings through different sources, including press releases, 10-Q, 10-K, and 8-K filings. We chose 10 companies that hold the largest sum of Bitcoin and listed the stocks in ascending order of their holdings. We also mentioned the hedge fund sentiment around each stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Is MicroStrategy Incorporated (MSTR) Hoarding Bitcoin Like There’s No Tomorrow?
A software engineer wearing a headset, collaborating with a remote team on a project.
Bitcoin Holdings: 439,000
Number of Hedge Fund Holders: 25
MicroStrategy Incorporated (NASDAQ:MSTR) provides AI-driven enterprise analytics software and services globally. Its offerings include MicroStrategy ONE for user-friendly insights, MicroStrategy Cloud for Government with advanced threat monitoring, and support services for system optimization.
The company also provides consulting, training, and bitcoin-related development. On December 14, Nasdaq announced that MicroStrategy along with two other companies will be added to the Nasdaq-100 Index, effective before the market opens on December 23, 2024.
After the Nasdaq inclusion news, on December 16, Benchmark analyst Mark Palmer reiterated its Buy rating for MicroStrategy (NASDAQ: MSTR) with a $650 price target, based on a valuation considering its projected bitcoin holdings, FY26 Bitcoin Yield, and software business value by 2026. The firm noted that inclusion in the Nasdaq-100 could boost the stock in the short term, while S&P 500 inclusion presents a larger medium-term opportunity. Although MicroStrategy meets S&P 500 market cap and trading volume criteria, it lacks the required earnings record. However, adopting new FASB accounting rules in early 2025 may enable it to report positive earnings. Palmer added:
“The addition of the first bitcoin-focused company to the Nasdaq-100 will give indirect exposure to Bitcoin to millions of investors.”
MicroStrategy (NASDAQ:MSTR) became the first public company to adopt Bitcoin as its primary treasury reserve, setting an example later followed by firms in August 2020. On December 16, 2024, the company reported purchasing around 15,350 bitcoins between December 9 and December 15, 2024, for approximately $1.5 billion, averaging $100,386 per bitcoin, including fees. By December 15, 2024, the company and its subsidiaries held approximately 439,000 bitcoins, acquired for a total of $27.1 billion at an average cost of $61,725 per bitcoin, including expenses.
Overall, MSTR ranks 1st on our list of companies hoarding bitcoin like there’s no tomorrow. While we acknowledge the potential of MSTR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MSTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
