20 Best Cryptocurrency Stocks to Buy According to Hedge Funds

15. MicroStrategy Incorporated (NASDAQ:MSTR)

Number of Hedge Fund Holders: 26

MicroStrategy Incorporated (NASDAQ:MSTR) offers artificial intelligence-powered enterprise analytics software and services. The company claims to be the world’s first Bitcoin development company and focuses on the development of the Bitcoin network through activities in the financial markets, advocacy, and technology innovation. MicroStrategy’s Software Technology business remains its core revenue and cash flow generator.

As the largest corporate holder of Bitcoin, MicroStrategy remains focused on its Bitcoin development strategy. Simultaneously, the firm is benefitting from the growing global adoption of its cloud-powered BI and AI software. The firm reported strong double-digit growth in both subscription revenue and subscription billing during the year’s second quarter. The firm is also leveraging high-profile institutions and individuals showing interest in Bitcoin. A downside the company is facing is the product licenses and subscription services revenues declining by 5.7% year-over-year.

In the software business, MicroStrategy Incorporated (NASDAQ:MSTR) is positioned as the largest independent publicly traded business intelligence company globally. The growing subscription services revenue during the second quarter driven by both existing customer migrations to the cloud and new customer wins, is evidence of the performance of this business. With customers moving to the cloud to empower their AI-driven digital transformations, the firm expects to see a decline in product license revenues and support revenues which will be offset by the rise in subscription services revenues.

The dynamics of shifting upfront product license revenues to subscription services revenues as the company migrates customers to the cloud might reduce revenue in the short term but will ultimately lead to engaged customers utilizing the firm’s latest software, higher retention rates, and more durable and recurring cloud revenues. In short, MicroStrategy continues to champion Bitcoin as a strategic treasury reserve asset while laying out a clear growth trajectory for the future. As of Q2, the stock is held by 26 hedge funds. Citadel Investment Group was the top shareholder with a stake worth $1.9 billion.