- Bitcoin‘s price may soar this month and so, too, might the shares of MicroStrategy, which owns billions of dollars worth of BTC, a TD Cowen analyst said.MicroStrategy is poised to be “meaningfully higher” at the end of the year, Lance Vitanza said.
Last week, MicroStrategy announced a net loss of $53.1 million in the first quarter of 2024, which included a charge of $191.6 million for the devaluation of its digital assets. However, had the company adopted a new digital asset accounting standard, it would have recognized a substantial profit from the early-year increase in bitcoin’s value.
At the MicroStrategy World 2024 user conference in Las Vegas last week, Vitanza shared that attendees expressed positive feedback towards the company’s legacy software business. This unexpectedly favorable response has caused Vitanza to reconsider the potential benefits of the existing business operations.
The business’s stock, having risen by 89% so far this year, may experience further significant gains owing to two primary factors influencing the price increase of bitcoin.
Institutional investment managers have until May 15 to submit form 13-F to the Securities and Exchange Commission, revealing their holdings. An increase in the number of firms reportedly buying recently approved spot bitcoin ETFs during Q1 would indicate growing institutional endorsement for Bitcoin.
As an analyst, I believe Vitanza raised an intriguing perspective when suggesting that the potential rejection of an Ether Exchange-Traded Fund (ETF) by the Securities and Exchange Commission (SEC) could present a positive outcome for Bitcoin and MicroStrategy. This is because such a decision might intensify the focus on Bitcoin as a leading digital asset, potentially boosting its value and, in turn, benefiting companies like MicroStrategy that have substantial Bitcoin holdings.
As a researcher, I’ve come across an intriguing observation: Ethereum‘s future remains uncertain and may take until 2025 or beyond to clarify. Nevertheless, we estimate that a considerable pool of capital is on standby, eagerly anticipating the emergence of a digital victor. If Bitcoin manages to secure this title, the resulting demand increase would likely be more pronounced given the recent bitcoin halving event.
According to CoinDesk’s figures, Bitcoin has experienced a 43% increase in value since the beginning of the year and hit a new peak price above $73,000 in March. At present, its value is hovering around $63,000.
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2024-05-06 23:18