10 Companies Hoarding Bitcoin Like There’s No Tomorrow

Page 9 of 9

1. MicroStrategy Incorporated (NASDAQ:MSTR)

Bitcoin Holdings: 439,000

Number of Hedge Fund Holders: 25

MicroStrategy Incorporated (NASDAQ:MSTR) provides AI-driven enterprise analytics software and services globally. Its offerings include MicroStrategy ONE for user-friendly insights, MicroStrategy Cloud for Government with advanced threat monitoring, and support services for system optimization.

The company also provides consulting, training, and bitcoin-related development. On December 14, Nasdaq announced that MicroStrategy along with two other companies will be added to the Nasdaq-100 Index, effective before the market opens on December 23, 2024.

After the Nasdaq inclusion news, on December 16, Benchmark analyst Mark Palmer reiterated its Buy rating for MicroStrategy (NASDAQ: MSTR) with a $650 price target, based on a valuation considering its projected bitcoin holdings, FY26 Bitcoin Yield, and software business value by 2026. The firm noted that inclusion in the Nasdaq-100 could boost the stock in the short term, while S&P 500 inclusion presents a larger medium-term opportunity. Although MicroStrategy meets S&P 500 market cap and trading volume criteria, it lacks the required earnings record. However, adopting new FASB accounting rules in early 2025 may enable it to report positive earnings. Palmer added:

“The addition of the first bitcoin-focused company to the Nasdaq-100 will give indirect exposure to Bitcoin to millions of investors.”

MicroStrategy (NASDAQ:MSTR) became the first public company to adopt Bitcoin as its primary treasury reserve, setting an example later followed by firms in August 2020. On December 16, 2024, the company reported purchasing around 15,350 bitcoins between December 9 and December 15, 2024, for approximately $1.5 billion, averaging $100,386 per bitcoin, including fees. By December 15, 2024, the company and its subsidiaries held approximately 439,000 bitcoins, acquired for a total of $27.1 billion at an average cost of $61,725 per bitcoin, including expenses.

While we acknowledge the potential of MicroStrategy Incorporated (NASDAQ:MSTR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MSTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9