{"id":333779,"date":"2021-09-02T14:10:00","date_gmt":"2021-09-02T11:10:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/microstrategy-stock-flips-bullish-with-mstr-a-bitcoin-proxy-for-institutional-investors\/"},"modified":"2021-09-02T14:10:00","modified_gmt":"2021-09-02T11:10:00","slug":"microstrategy-stock-flips-bullish-with-mstr-a-bitcoin-proxy-for-institutional-investors","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/microstrategy-stock-flips-bullish-with-mstr-a-bitcoin-proxy-for-institutional-investors\/","title":{"rendered":"# MicroStrategy stock flips bullish with MSTR a Bitcoin &#8216;proxy&#8217; for institutional investors"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a37a5a415d82\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a37a5a415d82\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/microstrategy-stock-flips-bullish-with-mstr-a-bitcoin-proxy-for-institutional-investors\/#Is_MSTR_a_shortcut_to_gain_Bitcoin_exposure\" >Is MSTR a shortcut to gain Bitcoin exposure?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/microstrategy-stock-flips-bullish-with-mstr-a-bitcoin-proxy-for-institutional-investors\/#A_high-risk_play\" >A high-risk play<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># MicroStrategy stock flips bullish with MSTR a Bitcoin &#8216;proxy&#8217; for institutional investors <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>MicroStrategy&#8217;s stock (MSTR) is preparing to undergo a massive bull run in the sessions ahead.<\/p>\n<p>So shows a technical setup, dubbed inverse head and shoulder, that has a history of predicting upside moves with an accuracy of 83.44%, as per Samurai Trading Academy&#8217;s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/samuraitradingacademy.com\/7-best-price-action-patterns\/\">research<\/a>. MSTR <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to have formed a similar bullish structure, as shared by independent market analyst Bob Loukas.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/44c8c63f-0663-4835-a747-234daead2a4e.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>MicroStrategy stock daily chart featuring inverse head and shoulder setup. Source: Bob Loukas, TradingView.com<\/em><\/figcaption><\/figure>\n<p>In detail, an <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.investopedia.com\/terms\/i\/inverseheadandshoulders.asp\">inverse head and shoulder<\/a> (IH&amp;S) setup forms when the price forms three troughs in a row, with the middle one (head) deeper than the other two (shoulders). Meanwhile, all the troughs hang by a price ceiling (neckline).<\/p>\n<p>Traditional chartists consider IH&amp;S as bullish if the price breaks above the neckline with higher volumes. In doing so, the price expects to rise by as much as the distance between the middle trough&#8217;s bottom and neckline.<\/p>\n<p>Applying the classic definition to the MSTR chart, the next profit target for the stock appears near $1,478, almost twice the current bid range.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_MSTR_a_shortcut_to_gain_Bitcoin_exposure\"><\/span>Is MSTR a shortcut to gain Bitcoin exposure?\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The upside outlook for MSTR appears as it continues to stay positively correlated to Bitcoin (BTC), a highly volatile cryptocurrency propagated as &#8220;digital gold&#8221; by its hardcore enthusiasts.<\/p>\n<p>MicroStrategy owns\u00a0105,085 BTC worth around $5.23 billion as\u00a0Bitcoin price returns to $50,000. In fact, the Nasdaq-listed company&#8217;s exposure to Bitcoin has made MSTR a quasi-proxy for the flagship cryptocurrency.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/4373dc61-a5c6-4573-99e8-2053b64a245e.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>MSTR daily price chart versus BTC\/USD. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<p>MSTR has gained momentum, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.barrons.com\/articles\/who-variant-of-interest-mu-51630499402\">especially amid aggressive traders<\/a>\u2014those with a higher appetite for risks\u2014with its year-to-date returns now at 65.21%.<\/p>\n<p>At the same time, Bitcoin prices have climbed 68.22%, with many analysts now anticipating the BTC\/USD rates to grow double by the end of 2021 and hit $100,000.<\/p>\n<p>But MSTR and BTC\/USD showed signs of decoupling after June. In the period, the MicroStrategy stock limited its downside moves against a comparatively aggressive bearish trend in the Bitcoin market. Financial analyst Alexander J Poulos <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/seekingalpha.com\/article\/4447429-mstr-using-microstrategy-to-lever-up-bitcoin-exposure\">spotted the deviation<\/a>, noting that it could have been due to\u00a0Capital Group&#8217;s investment in MicroStrategy.<\/p>\n<p>In June, the U.S.-based financial services company, which runs the American Funds family of mutual funds, bought a 12.2% stake in MSTR. Poulos stressed that Capital Group&#8217;s $600 million investment was an indirect way for it to gain exposure to Bitcoin.<\/p>\n<p>&#8220;With the SEC not approving a pure-play BTC ETF, MSTR will continue to serve as a proxy for fund families,&#8221; he said, adding:<\/p>\n<blockquote><p>&#8220;The move by the Capital Group is not an outlier. I expect others to initiate or add to their existing positions.&#8221;<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"A_high-risk_play\"><\/span>A high-risk play<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>MicroStrategy has amassed heavy debts to purchase Bitcoin. Therefore, considering they would sell their crypto holdings to respect their financial commitment to bond investors could be a potentially negative event for MSTR.<\/p>\n<p>In his <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/seekingalpha.com\/article\/4445124-microstrategy-stock-mstr-better-than-buying-bitcoin\">SeekingAlpha op-ed<\/a>, Joshua Sorto, the staff accountant at MNCPA, wrote that MicroStrategy could easily pay back the debt on their first $650 million convertible note\u2014MSTR is already trading above $517 to convert notes into shares that do not require Microstrategy to sell the Bitcoin inventory.<\/p>\n<p>But the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.businesswire.com\/news\/home\/20210219005359\/en\/MicroStrategy-Completes-1.05-Billion-Offering-of-Convertible-Senior-Notes-Due-2027-at-0-Coupon-and-50-Conversion-Premium-with-Bitcoin-Use-of-Proceeds\">second convertible note<\/a> has a conversion rate benchmark set at $1,432.46. That said, MicroStrategy would need to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>le its market valuation by 2027, which means MSTR would need to rise over 100% before the bond&#8217;s maturity.<\/p>\n<p>&#8220;In order for MSTR to do that, the analytics business will have to produce cash flows of $125 million per quarter; at the moment, it\u2019s running at less than half that level,&#8221; Sorta said while referring to MicroStrategy&#8217;s second-quarter earnings.<\/p>\n<p>The third note is not convertible. MicroStrategy has bought\u00a013,005 BTC with nearly half a billion-dollar worth of proceeds. So, whether or not the firm would pay off its debt depends majorly on Bitcoin&#8217;s performance until 2026.<\/p>\n<p><strong><em>Related:\u00a0MicroStrategy stock slides after announcing new $400M debt raise to buy Bitcoin<\/em><\/strong><\/p>\n<p>In its filings with the U.S. Security and Exchange Commission, MicroStrategy has revealed a total of 49 risks, 47% of which concerns finance and corporates. Also, the risk tally comes to be higher than the S&amp;P Average of 31.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/299638e8-08aa-4236-9631-2631554a2c78.png\"><figcaption style=\"text-align: center;\"><em>MicroStrategy risk disclosures. Source: TipRanks<\/em><\/figcaption><\/figure>\n<p>Poulos admitted that he is bullish on Bitcoin in the coming years, which, in extension, means he is also bullish on MicroStrategy. Sorto also expressed a similar outlook, noting that MSTR&#8217;s association with a booming Bitcoin industry would have the stock retain its upside outlook long-term.<\/p>\n<p>&#8220;There are no storm clouds on the horizon, but a few clouds in the distance are worth monitoring,&#8221; he wrote.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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So shows a technical setup, dubbed inverse head and shoulder, that has a history of predicting upside moves with an accuracy of 83.44%, as per Samurai&#8230;<\/p>\n","protected":false},"author":1,"featured_media":333780,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDkvMjQ1YmVlODctMzc2ZS00YTFmLTk3ZjctMmRlNjhhODJjOTdmLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,81951,74937,74982,74939,75150,108601,76514,78261,117,73785,70359],"class_list":["post-333779","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin-analysis","tag-bitcoin-price","tag-btc-markets","tag-market-analysis","tag-market-update","tag-stock-investment","tag-stock-market-indexes","tag-tech-analysis","tag-business","tag-markets","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/333779","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=333779"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/333779\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/333780"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=333779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=333779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=333779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}