Excuse Me, Mister

So I’m taking the Mr.
From out in front of your name
Cause it’s a Mr. like you
That puts the rest of us to shame…

–Ben Harper, “Excuse Me Mr.”

The great Ben Harper didn’t have this “MSTR” in mind when he wrote the song, “Excuse Me Mr.,” but the “MSTR” I’m referring to does put many stocks to shame in terms of its outstanding share price performance.

That MSTR is, of course, MicroStrategy Inc. (NASDAQ: MSTR), the provider of enterprise-ready analytics, mobility and security software platforms for various industries.

Yet, the reason MSTR has put the rest of its stock brethren to shame is because of its heavy Bitcoin holdings. MSTR shares are up an incredible 644% year to date, and that’s because, on its balance sheet, the company holds more than 1% of all of the world’s Bitcoin!

MicroStrategy’s Executive Chairman and co-founder Michael Saylor recently predicted that the price of Bitcoin would soar by nearly 15,000% over the next 21 years. Yes, Saylor is a crypto evangelist, and he’s definitely got a lot of skin in the crypto game, which makes him admittedly biased — a bias that’s certainly paid off handsomely.

Saylor and MicroStrategy bought its first $250 million of Bitcoin in 2020. By early November of this year, those holdings had grown to 279,420 Bitcoins with an overall purchase price of $11.9 billion and a market value of $24.5 billion. More importantly for us, Saylor’s bias is one we can ride here, as MSTR is a technology and Bitcoin play we can use in this service to capture alpha.

So, today, let’s do just that with the following new buys:

Equity: Buy MicroStrategy Inc. (NASDAQ: MSTR) at market, with a protective stop at $350.00.

Options: Buy the MSTR April $510.00 call options (MSTR250417C00510000) at market, which last traded for $180 and expire on April 17.

Now, one note here on MSTR. It’s a nominally expensive stock at $471 per share, and the calls are quite nominally costly at $180 per contract, which translates into a purchase price of nearly $18,000 per contract.

Yet, despite the relatively high cost, the upside here makes it worth the ride, in my opinion. So, if you can buy the stock and the calls, that’s great. If you only can buy the stock, that’s great, too. And if you can only buy the calls, then that will also work.

The key is to get long MSTR for its technology and its Bitcoin exposure. So, do that today, and let’s keep our string of consecutive triple-digit-percentage gains going strong for the rest of the year and beyond with this “Mister.”

In the name of the best within us,

Jim Woods
Editor
Crypto & Commodities Trader