MicroStrategy Stock Rises and Falls With Bitcoin, Faces New Threats From ETFs
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MicroStrategy holds a lot of bitcoin on its balance sheet - about $8 billion worth. This makes it a "bitcoin proxy stock".
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MicroStrategy's stock price has moved closely with bitcoin's price in the past year, rising over 100% in 2022.
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But new bitcoin ETFs could make MicroStrategy less appealing to investors going forward. The stock fell 20% after ETF approval.
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However, bitcoin's price could still rise dramatically in 2024 due to the upcoming "halving event". This could double the value of MicroStrategy's bitcoin.
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Even with new bitcoin ETFs available, some major investors like Vanguard are opting to invest in MicroStrategy instead, making it an intriguing bitcoin proxy play.