To The Moon

$CME Bitcoin - main 2501(BTCmain)$ clear $101,000 level, coming up from an earlier low around $98,000 and trading at its highest levels in nearly three weeks. The digital currency has gained about 45% since the election on investor hopes that a pro-crypto Trump White House and Congress will adopt policies that benefit the asset class.

MicroStrategy (MSTR) Unlocking Institutional Goldmine

MicroStrategy is planning to raise up to $2 billion by issuing preferred stock, advancing its ambitious “21/21” plan to sell $42 billion in equity and fixed-income securities. The software company has leveraged its issuance of convertible bonds to capitalize on share price volatility, benefiting from a stock that soared 500% last year.

MicroStrategy has tapped into the demand among convertible bond investors for higher implied volatility, a feature that Benchmark analysts say enhances the appeal of the equity conversion option embedded in these bonds.

“The extent to which investors value this element of MSTR’s offerings has been reflected in the oversubscription of its convertible offerings and their pricing,” wrote Benchmark equity analyst Mark Palmer in a note on Monday. He cited the November 2024 issuance as a key example, where strong demand for $1.75 billion in convertible bonds allowed the offering to be upsized to $3 billion. Notably, the bonds carried a 0% coupon.

By turning to perpetual preferred stock, MicroStrategy could attract institutional investors such as insurance companies, pension funds and banks, Palmer said. These entities typically favor assets with fixed dividend payments and relatively low volatility. Unlike bonds, perpetual preferred stock does not have a maturity date or a mandatory redemption timeline, instead paying fixed dividends indefinitely as long as the issuing company remains operational.

Shares of $MicroStrategy(MSTR)$ , one of the world's largest holders of bitcoin, were up nearly 12% to lead Nasdaq gainers. The company said Monday it had purchased more bitcoin for the ninth consecutive week, after announcing on Friday it would raise capital via a share offering in a move to strengthen its balance sheet and allow it to buy more of the digital currency.

I entered small position on MSTR, as I see that Bitcoin fund inflow should help to keep Bitcoin above $100,000.

If we looked at how MSTR is trading, MSTR bulls have been trying to break out of the 12 EMA, and finally succeed in doing it on Monday (06 Jan). but we need to be careful as there is a possibility of MSTR dropping back to the 26 EMA level at around $340, if Bitcoin were to drop again back to the $95,000.

So we need to see what happen two weeks from now until President-elect Trump first day in office, whether thee will be any announcement on the reserve on crypto currency.

MARA Holdings Timely Hash Rate and BTC Holdings Increased

$MARA Holdings(MARA)$ , a prominent player in the digital asset compute field with a market capitalization of $5.5 billion, announced an unaudited update on its Bitcoin (BTC) production and miner installation for December 2024, revealing an increase in their hash rate and BTC holdings. According to InvestingPro analysis, MARA's stock currently appears slightly undervalued, with analysts setting price targets ranging from $21 to $44.

The company's energized hash rate improved by 15% to 53.2 EH/s, surpassing its year-end target of 50 EH/s. Despite the increase in hash rate, BTC production saw a slight decrease of 2% from the previous month, totaling 890 BTC. This was attributed to a minor reduction in mining luck. MARAPool, MARA's own mining pool, reported an annual hash rate growth of 168% in 2024, outpacing the bitcoin network's growth rate of 49%.

This was timely as MARA begin to gain after Bitcoin cross $101,000, so if we were to look at how Bitcoin have surged because of the inflows of funds, we can see that the fund flow is coming back.

For MARA on the technical side, we are seeing a crossover at the 12-EMA and 26-EMA, this could mean bullish if 12-EMA goes above, and now MARA bulls is still attempting for a bullish upside expansion to the previous highs.

There is still resistance as market is still adopting a wait-and-see for this Bitcoin miners. I think we can continue to look at how this stock would played out.

Summary

If we looked at how crypto stocks have benefitted from Bitcoin sudden rally on Monday (06 Jan), there are some stronger winner, like $Coinbase Global, Inc.(COIN)$ $MicroStrategy(MSTR)$ , for the miners, there have not been any surprise gap up, so we might need to be patient to continue to see how Bitcoin played out towards 20 Jan.

I think we can still looked at the crypto stocks, as there are some of the stronger ones who correlate with Bitcoin price.

Appreciate if you could share your thoughts in the comment section whether you think crypto stocks would continue to win as Bitcoin makes its rally again.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.