Schaeffer's 43rd Anniversary Stock Picks in 2024

Microstrategy Has Potential for Stock Traders With a Crypto Interest

Equity options traders can capitalize on crypto with MSTR positions

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The world of cryptocurrencies is absolutely crazy at the moment. One day you could be making gains that people only dream of, then the next day you have given all those gains back to the crypto-market. The crypto-market is so volatile that even one man and his Twitter account can cause an entire crypto-market to plummet (I’m looking at you, Musk). The very nature of the crypto-market is extremely volatile, meaning that you could lose or gain a lot of money in a very short space of time.

The most popular cryptocurrency is Bitcoin, and it has seen a lot of action since its creation back in 2009 by Satoshi Nakamoto (who’s identity we still don’t know). It started off as relatively unknown digital currency that wasn’t worth anything, until it suddenly exploded and now everyone wants a piece of the action. Other cryptocurrencies have sprung off of bitcoin to become key players in the cryptocurrency world, such as Ethereum, Ripple, and Binance Coin. All of which have some weight behind them as there are a lot of investors that have backed these coins. They were all pretty unknown digital currencies until they started gaining momentum, and now they have market caps worth billions of dollars.

However, it’s not just cryptocurrencies you can invest in to make a profit off of this crypto-craze. You can actually invest in companies that have invested in cryptocurrencies themselves. Companies like Microstrategy Incorporated (NASDAQ:MSTR), which specifically has purchased $1.2 billion worth of Bitcoin.

Microstrategy has accumulated a lot of bitcoin since it started adding the cryptocurrency onto its balance sheet back in mid-August 2020. A couple of insiders in Microstrategy were fond of bitcoin and stated that bitcoin was “superior to cash” and a “dependable store of value." Ever since MSTR had openly admitted their fondness for bitcoin, they have been on a buying spree. This move has been admired by many cryptocurrency advocates and those advocates have since praised Saylor by putting him on a pedestal. A lot of cryptocurrency investors think this is a good move on Microstrategy's part, as more and more companies are starting to realize the true potential of cryptocurrencies.

Microstrategy stock, on the other hand, hasn’t seen much love in the way value. It looks like the Microstrategy stock is currently correlated with the price of bitcoin, so when the price of bitcoin goes down, so does MSTR stock price. With that being said, the crypto market is starting to see small signs of recovery, which means that it could be the perfect buying opportunity to purchase Microstrategy stock shares while they are incredibly undervalued. In doing so, when the crypto market recovers and bitcoin starts making new highs again, we should start to see MSTR shares sky-rocket if the correlation continues.


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