- MicroStrategy stock fell as Bitcoin dropped below $110,000.
- MicroStrategy holds over $74 billion in Bitcoin, with $27 billion in unrealized gains.
- The company recently avoided a multi-billion dollar tax bill on its Bitcoin holdings.
- Precious metals like Gold and silver have seen record highs as investors seek alternatives during market volatility.
- Analysts maintain a Buy rating for MicroStrategy with a price target of $705, despite a 1% year-to-date decline.
MicroStrategy shares declined on Thursday after Bitcoin prices fell below $110,000. The company, led by Michael Saylor, is the largest institutional investor in Bitcoin and its stock typically moves in line with the cryptocurrency.
MicroStrategy stock has increased from about $123 in August 2020 to approximately $284, peaking above $1,300 during Bitcoin’s 2024 rally. The company currently holds more than $74 billion in Bitcoin and reports more than $27 billion in unrealized gains. Earlier this month, it gained over $8 billion in market capitalization. The U.S. Treasury and IRS recently waived a multi-billion dollar tax bill on the company’s Bitcoin holdings, helping MicroStrategy avoid significant tax costs.
As the market declines, investors are looking at alternative investments to regular currency. While Bitcoin has also lost value, some experts suggest investing in precious metals. Gold and silver futures have both hit record highs, with spot prices also rising. Public Firms Holding Bitcoin Increase By 40%: $117 Billion Held.
John Hathaway, senior portfolio manager at Sprott Asset Management, stated that silver could have more room to grow compared to gold because its price remains low relative to gold’s. Gold has recently traded at about 80 times the price of silver, above the historic average of 67 times. Hathaway said, “Chronic underinvestment, supply shortages and its dual role as both a monetary and industrial metal position silver prices for a breakout.”
Analysts continue to support MicroStrategy, maintaining a Buy rating and setting a price target of $705 despite concerns over volatility in companies holding digital assets. The stock is down 1% since the start of the year and is currently trading nearly 30% below its 52-week high of $473.83 set in November 2024.
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