5 Crypto Stocks To Avoid During The SEC Crackdown

In this article, we will be looking at 5 crypto stocks to avoid during the SEC crackdown. To see more of these stocks, you can go to 10 Crypto Stocks To Avoid During The SEC Crackdown.

5. MicroStrategy Incorporated (NASDAQ:MSTR)

Number of Hedge Fund Holders: 13

MicroStrategy Incorporated (NASDAQ:MSTR) is a business intelligence company with large Bitcoin holdings. By April, the company had about 140,000 BTC.

There were 13 hedge funds long MicroStrategy Incorporated (NASDAQ:MSTR) in the first quarter, with a total stake value of $64.1 million.

Miller Value Partners made the following comment about MicroStrategy Incorporated (NASDAQ:MSTR) in its first-quarter 2023 investor letter:

“MicroStrategy Incorporated (NASDAQ:MSTR) 0.75% 12/15/2025 rose in sympathy with Bitcoin’s 71.7% gain during the first quarter. The company reported 4Q22 revenue of $132.6MM, -1.5% Y/Y (+4.1% on constant currency basis), ahead of consensus of $131.0MM, and an adjusted loss from operations of -$176.7MM, compared to a 4Q21 adjusted loss of -$124.3MM. During the quarter, MicroStrategy’s subsidiary, Macrostrategy, voluntarily paid off a $205MM loan to Silvergate Bank with a 22% discount after the bank filed for liquidation earlier this year. Additionally, MicroStrategy reported that it purchased another ~6.5K bitcoin for ~$150MM in cash, at an average price of $23.2K per token, bringing the company’s total holdings to ~139.0K bitcoin as of 3/23/23, which is worth approximately $3.95B based on a bitcoin price of ~$28.4K as of 3/31/23.”