Michael Saylor, the acclaimed chair of MicroStrategy (NASDAQ:MSTR), is recognized for his bullish stance on Bitcoin (BTC-USD) and for the company’s significant holdings in this cryptocurrency. As an investor interested in MicroStrategy, dismissing Bitcoin could be a disqualifying factor.
Beyond its enthusiasm for Bitcoin, MicroStrategy maintains a solid software business that complements its crypto pursuits. An intriguing proposition related to cryptocurrency underscores an investment in MicroStrategy, which is worth examining.
Also, many might have overlooked the artificial intelligence (AI) component of MicroStrategy, which became noticeable at the MicroStrategy World 2024 event, as attention diverted to the company’s crypto commitments.
As stated in a company press release, MicroStrategy grandly showcased its Auto Express software at this event. Auto Express, a trial version of the MicroStrategy Auto software, permits users to incorporate data-driven AI assistants into any application to leverage the available data.
A significant portion of the event’s attendees managed to construct an AI bot using Auto Express, suggesting its user-friendly design.
Potential investors should observe Auto Express, which could become a vital revenue generator for MicroStrategy. Furthermore, MicroStrategy could market itself as an AI-software supplier to a variety of businesses.
While MicroStrategy may gain traction as an AI-software company in 2024, under Saylor’s leadership, it has essentially transformed into a Bitcoin-accumulating enterprise.
If you are significantly bullish about Bitcoin, this might not concern you. However, as a potential investor and holder of MicroStrategy stock, staying informed is paramount, especially on crypto-related developments.
One significant event was the SEC’s approval of spot Bitcoin exchange-traded funds (ETFs). This led to speculation on the SEC’s potential approval of spot Ethereum (ETH-USD) ETFs.
However, Lance Vitanza believes this won’t transpire soon. Interestingly, Vitanza concludes that the SEC’s possible rejection of spot Ethereum ETFs in 2024 could benefit MicroStrategy, since he notes:
“This is seminal because Ethereum’s status may stay unsettled until 2025 or beyond, but we believe plenty of capital is on standby for a digital victor to be named; if Bitcoin proves to be that victor, the additional demand would likely be felt more intensely due to the recent bitcoin halving.”
The implication is that Bitcoin’s popularity this year arises from the halving event and the SEC’s approval of spot Bitcoin ETFs. If the SEC rejects spot Ethereum ETFs in 2024, cryptocurrency investors may reroute funds towards Bitcoin, thus benefiting MicroStrategy, owing to its substantial Bitcoin holdings.
Vitanza’s logic may initially appear perplexing, but it becomes clear upon careful consideration.
Monumental inquiries loom over MicroStrategy. Can it successfully position itself as an AI-software firm? Will regulatory barriers for proposed spot Ethereum ETFs boost Bitcoin and, by default, MicroStrategy?
Nonetheless, for potential MicroStrategy investors, perhaps the most significant question is: How bullish are you on Bitcoin? If you only have moderate enthusiasm, MicroStrategy may not be the best investment for you.
One must remember, MicroStrategy is primarily a Bitcoin-hoarding entity. Therefore, if one anticipates a long-term surge in Bitcoin’s value, considering the purchase of some MicroStrategy shares might be worthwhile.
Let us know what you think. Please share your thoughts in the comments below.
