The Binance cryptocurrency exchange today announced an expansion in the tokenized shares segment. At 16:30 Moscow time, users will get access to tokens based on Microstrategy shares (MSTR). Earlier, shares of Tesla (TSLA) and Coinbase (COIN) were already presented on the Binance platform.
Microstrategy is the largest bitcoin investor among public companies. Since last year, it has invested $2.226 billion in cryptocurrency at an average price of $24,311 per coin. At the current exchange rate, the value of its position is $4.84 billion, which is 2.2 times the amount of invested funds.
The decision to acquire bitcoin was successful in supporting the interests of the company's shareholders. Since the first purchase in August 2020, the MSTR has risen from $130 to a high of about $1,315 in February. The price has since adjusted to the current $613. MSTR shares have proven themselves as a tool for indirect investment in bitcoin in traditional markets, as can be seen from the high correlation of the two assets ' rates over short time intervals. However, at the beginning of this year, MSTR initially outperformed bitcoin, but with the slowing of the uptrend, they began to lag behind it.
According to CNN, out of four Wall Street analysts, the maximum forecast for MSTR shares for the next 12 months was $920, the minimum – $325, and the median - $775, which is 26% higher than the current rate. On this basis, two of them recommended buying, one each recommended holding and selling.
"We believe that the determining factors for Microstrategy's stock in descending order are the price of bitcoin on the spot market, investor sentiment around digital assets, market rates and the performance of its key business," said Canaccord Genuity analyst Joseph Wafi. – We have noticed that higher-beta stocks have recently experienced a significant pullback while the bitcoin price has shown resilience."
On April 29, after the markets close, Microstrategy will report its financial results for the first quarter of 2021, which may also be reflected in the value of securities.
"Microstrategy's core business is built around solid investments in enterprise software with proprietary catalysts. Without this business, MicroStrategy would not have been able to purchase 91,600 bitcoins using convertible bonds at an attractive price, " adds Vafi. – Nevertheless, at the current stage, Microstrategy's bitcoin assets make up a significant part of the company's corporate value. And we are looking positively at the future of bitcoin. Although under no circumstances will we call bitcoin a massive asset, we also can't help but believe that its rate is going up over time."
In addition to Microstrategy, Binance users will be able to trade tokenized shares of Apple (AAPL) and Microsoft (MSFT). The markets will open on April 28 and 30, respectively.
Earlier it became known that European regulators are checking the legality of the tokenized shares offered by Binance.