2. MicroStrategy Incorporated (NASDAQ: MSTR)
Number of hedge fund holders: 15
MicroStrategy Incorporated (NASDAQ: MSTR) is a Virginia-based firm that offers business intelligence, mobile software, and cloud-based services. One of the most famous products of the firm is MicroStrategy 2021, a platform giving businesses state-of-the-art analytics experience through hyperintelligence products, visualization, mobility features, and custom applications. The firm was founded in 1998 and is placed second on our list of 10 best crypto stocks to buy amid hedge fund interest.
On April 9, investment banking firm Canaccord Genuity started coverage on MicroStrategy stock with a bullish rating of Buy and a price target of $920. Joseph Vafi, an analyst at the banking firm, said that the future drivers for the company included bitcoin spot price, investor sentiment around crypto, and the performance of Micro’s business intelligence system.
At the end of the fourth quarter of 2020, 15 hedge funds in the database of Insider Monkey held stakes worth $134 million in the firm, down from 20 in the preceding quarter worth $87 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.”
