MicroStrategy joins MSCI World Stock Index, highlighting crypto’s role
MSTR stock outperforms Bitcoin rally, seen as a Bitcoin proxy
Analyst sentiment positive on MSTR despite recent pullback
MicroStrategy, the company famous for its massive Bitcoin holdings has been added to the MSCI World Stock Index. This move reflects the increasing acceptance of cryptocurrency in the traditional investment portfolios.
MicroStrategy’s strong Bitcoin advocacy is well-known. The company grabbed headlines during the pandemic by using a large portion of its cash reserves to buy Bitcoin. They currently hold 214,400 BTC at an average purchase price of $35,180 per bitcoin.
This inclusion comes amidst a stellar year for MicroStrategy stock (MSTR). Its price has quadrupled compared to last year, even outperforming the impressive Bitcoin rally by a significant margin. Earlier this year, when Bitcoin reached its peak, MSTR stock also surged to new highs. However, a recent market correction caused a pullback, leading to a price decrease of over 30% for MSTR.
Many investors viewed MicroStrategy stock as an indirect way to hold Bitcoin especially before the launch of spot Bitcoin ETFs this year. These new investment vehicles might challenge MicroStrategy’s dominance in offering Bitcoin exposure through the stock market. Additionally, some analysts believe that the stock is currently overvalued and have taken short positions against it.
Despite these concerns, analyst sentiment remains largely positive. The average 12-month price target for MSTR sits nearly 30% higher than its current price suggesting continued growth potential. The company’s inclusion to the MSCI index further strengthens its position in both the stock and crypto market as traditional and digital assets increasingly converge.
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