MicroStrategy Now Holds $13.6B Worth of Bitcoin, 1% of Total Circulating Supply: Canaccord

MicroStrategy’s business strategy involves obtaining and keeping a significant amount of bitcoin. Approximately 1% of the overall circulating bitcoin supply, which amounts to around 197,000 tokens, is currently owned by the company.

As a researcher, I’ve discovered that the software company experienced significant growth in subscription services revenue during the first quarter, with figures exceeding 10%. This expansion can be attributed to their transition to cloud-based business operations. However, the report also indicated a net operating loss of $53.1 million following the recognition of a digital asset impairment charge totaling $191.6 million. The company announced these findings in a press release on Monday.

As a crypto investor, I can imagine the situation like this: The company had the option to follow the latest digital asset accounting standard and report significantly higher profits for the first quarter, given Bitcoin’s impressive price surge. However, they chose to stick with their current accounting methods instead.

As a research analyst, I recently adjusted my price target for MicroStrategy from $1,810 to $1,590 while keeping the buy rating. Following this announcement, the company’s stock experienced a 2.5% decline, dropping to $1,261 during after-hours trading.

The authors pointed out that the current equity value premium, which stands at 71%, remains quite substantial in relation to the “HODL” strategy. They cautioned that any contraction in this premium could signal potential danger.

As a crypto investor, I believe that MicroStrategy’s bitcoin holdings are valuable due to their scarcity. This company is one of the most accessible ways for equity investors to gain exposure to the digital asset. According to Canaccord, this unique setup could lead to an extra premium on top of the spot price being reflected in MSTR shares once again.