4. MicroStrategy Incorporated (NASDAQ: MSTR)
Number of Hedge Fund Holders: 15
Software company MicroStrategy Incorporated (NASDAQ: MSTR) ranks 4th in our list of 10 best bitcoin stocks to buy now. Virginia-based MicroStrategy Incorporated’s cloud-based enterprise applications and services are used in various sectors, including banking, insurance, retail, manufacturing, healthcare, and government.
The company has a market cap of $6.4 billion and total revenue of $122.9 million in the first quarter of 2021. The company also bought 20,857 Bitcoins for $1.086 billion, or $52,087 per Bitcoin, for a total of 91,326 Bitcoins at an average price of $24,214 end of the period. On April 9, Canadian financial firm Canaccord Genuity initiated a Buy recommendation for MicroStrategy (NASDAQ: MSTR) with a $920 price goal. Shares of MSTR increased 436% over the past twelve months.
There were 15 hedge funds that reported owning stakes in MicroStrategy Incorporated at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $134.7 million.
Alger Mid Cap Focus Fund, in their Q1 2021 investor letter, mentioned MicroStrategy Incorporated (NASDAQ: MSTR). Here is what Alger Mid Cap Focus Fund has to say about MicroStrategy Incorporated in their Q1 2021 investor letter:
“MicroStrategy Incorporated was among the top contributors to performance. MicroStrategy is a global leader in enterprise analytics software and services. MicroStrategy’s core software platform provides customers with visualization and reporting capabilities, mobility features and custom applications to help with complex business questions. Today, MicroStrategy has over 4,000 customers worldwide. In August 2020, MicroStrategy decided to make bitcoin its preferred reserve currency. To date, MicroStrategy has purchased over 90,000 bitcoins at an aggregate purchase price of $2.17 bi11 ion and an average price of over $23,985 per bitcoin. Going forward, MicroStrategy plans to use excess cash generated by its core business to purchase additional bitcoin.
Shares of MicroStrategy outperformed in the first quarter due to the appreciation of the company’s bitcoin asset, as the price of
bitcoin relative to the U.S. dollar rose materially in the quarter. This bitcoin appreciation was driven by concerns about U.S. dollar inflation as well as other public companies deciding to acquire bitcoin to diversify reserve assets. MicroStrategy is establishing itself as a thought leader in the bitcoin space, and the company hosted an event at its February user conference to help other organizations understand the benefits of bitcoin as a reserve asset. MicroStrategy’s core software business is also benefitting from its status as a leader in the bitcoin space, with the increased public attention aiding MicroStrategy’s recruitment and marketing efforts as the software business continues to transition to a cloud-based subscription model.”
