The world's largest cryptocurrency is now within striking distance of its all-time high as investors turn increasingly bullish on bitcoin.
Bitcoin (BTC-USD) surged past $57,000 intraday on Tuesday, the first time the digital asset has sat at that milestone in over two years. The cryptocurrency has rallied almost 30% year-to-date in 2024 alone, ahead of the bitcoin halving event in April. Benchmark Managing Director and Senior Research Analyst Mark Palmer joins Yahoo Finance to discuss his long-term forecasts for bitcoin as crypto prices surge. When asked what companies are best positioned to leverage the crypto asset, Palmer explains: "I have to come back to MicroStrategy (MSTR) simply because if you look at the correlation coefficient between bitcoin and MicroStrategy, it's 0.94. So if someone can go out and buy bitcoin in the market, fine, but many institutional investors in particular do not have the ability to do that under their mandates and so this offers an attractive alternative and again, on a levered basis. There's also a robust option stack around MicroStrategy and the stock itself is marginable, so you can't hedge effectively with a spot bitcoin ETF, you can hedge very effectively with the capital structure around MicroStrategy." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino
Over the past several years, MicroStrategy Inc. (NASDAQ:MSTR) and its Chairman Michael Saylor have been buying hundreds of thousands of Bitcoins, and the investment has been extremely successful. In a Feb. 26 report, MicroStrategy disclosed its most recent purchase of Bitcoin. Between Feb. 15 and 25, it bought an additional 3,000 Bitcoin for $155.4 million. On the day of the disclosure, MicroStrategy shares were up 15.86%, marking one of the best one-day performances in the company's history. Do