Daily Archives: 1. März 2021

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Betting on Bitcoin without owning BTC

Betting on Bitcoin without owning BTC – how does it work?

The Bitcoin price is rising and rising. But not only BTC enthusiasts can enjoy green candles. How you can also profit from the hype via classic stocks.

Until now, anyone who wanted to participate in the Bitcoin price first had to fight their way through the thicket of exchanges, wallets and the like in order to end up with physical Bitcoin at the end of the day. Quite time-consuming and hardly feasible for many. But times are changing. In the meantime, not only savvy hodlers can feast on Bitcoin’s dream returns, but also traditionally minded stockbrokers. With stock exchange companies like MicroStrategy, Square and Co., Bitcoin is entering the The News Spy scam portfolio in a roundabout way, so to speak. Three ways to participate in the Bitcoin price without owning BTC.

MicroStrategy is the talk of the town. Since the company switched to exchanging its US dollar reserves for bitcoin, the share price really only knows one direction: northwards. While the MSTR share (WKN: 722713 / ISIN: US5949724083) has been trading in no-man’s land between 50 and 200 US dollars since the dotcom bubble, since mid-2020 there has been no stopping it. MSTR is currently trading at USD 815 and has thus already multiplied compared to the same time last year. A year ago today, one share of MicroStratgey cost 136 USD – the company thus achieved a growth rate of about 500 percent in 12 months.

MSTR’s share price is unprecedented.

That’s huge. Especially when you consider that Bitcoin „only“ grew 430 percent in the same period. The company, whose core business is actually the distribution of business intelligence software, looks like a kind of leveraged bet on a bullish Bitcoin price on the stock market.

The rise can be explained by the extremely aggressive Bitcoin purchasing policy of the company’s management. MicroStrategy now holds an astounding 90,513 BTC – more than any other exchange company.

The dream returns of the company, which has not really changed anything in its business model except for the BTC accumulation policy, shows that the market is desperately looking for ways to participate in BTC.

But an MSTR investment is not without risk. After all, the share price these days shows all the characteristics of a classic bubble. For while the company’s treasurer is sitting on the largest digital gold hoard in stock market history, the core business is unchanged. The PE ratio, i.e. the ratio between share price and earnings per share, is at 3,294 higher than at any other Nasdaq-listed company. According to all classic stock market models, MSTR is overvalued by several orders of magnitude.