Wednesday was not a positive day for the shares of MicroStrategy Incorporated (MSTR) as the stock price fell 0.83% on the day to conclude at $321.32, but the stock remains gaining over the past week adding nearly 30% to its value.
The positive boost since last week came on the heels of a favorable statement from Citron Research manager Andrew Left, who I better known for his short-selling strategy. MicroStrategy is a provider of business analytics and remote employee management software, but the analyst did not consider the business of the company.
Analyst’s remarks were not specifically relevant to the business of MicroStrategy as he only noted that MicroStrategy can now be a destination for those who do not want to purchase bitcoins, but want to engage in this cryptocurrency’s investments. The analysis made the company more attractive destination for investors, not for all but some of them.
MicroStrategy purchased 38,250 Bitcoins in the third quarter, investing $425 million. This is a very big investment for this sort of risky investment, but they are successful so far the cost of purchased bitcoins has already reached $729 million. If Bitcoin increases to $50,000 per coin, MicroStrategy shares will hit $700, according to Andrew Left.
If this occurs at all it is unlikely that bitcoin can easily achieve a high value. In addition, there are several examples of virtual cryptocurrency exchange centers stealing funds. However, MicroStrategy will still have a company designing and selling software and services for enterprise analytics and mobile workers, even in this situation.
Buying bitcoins is a huge challenge for MicroStrategy Incorporated (MSTR), as it has invested a large portion of its cash reserve on cryptocurrencies. Yet investing in a public company that owns cryptocurrencies is clearly a less risky scenario for investors who choose to invest in bitcoins than actively engaging in an unregulated market for cryptocurrencies.