MicroStrategy Adds 5,262 BTC Holdings

CRYPTO
MicroStrategy Adds 5,262 BTC Holdings

MicroStrategy has acquired an additional 5,262 BTC, marking the seventh consecutive week of bitcoin purchases. The latest acquisition, completed during the week ending December 22, cost the company $561 million at an average price of $106,622 per bitcoin. This purchase brings MicroStrategy's total bitcoin holdings to an impressive 444,262 BTC, valued at approximately $42.2 billion at current market prices. The company's average acquisition cost now stands at $62,257 per bitcoin.

The bitcoin purchase aligns with MicroStrategy's continued strategy of leveraging cryptocurrency as a core component of its corporate value. The acquisition was funded through share sales under its at-the-market (ATM) program, which still has $7.08 billion available.

The announcement coincided with MicroStrategy's debut as a member of the Nasdaq 100 equity index, highlighting its significant presence in both the tech and crypto spaces. Despite the news, MicroStrategy's stock remained relatively steady in pre-market trading at over $364.20.

Executive Chairman Michael Saylor teased the purchase in a Sunday post on X, further emphasizing the company’s unwavering commitment to bitcoin accumulation. This latest move underscores MicroStrategy's role as a prominent institutional player in the cryptocurrency market.

FINANCE
December Stocks Historically Gain Strong

The “Santa Claus rally” is a year-end stock market phenomenon where equities typically rise, offering investors a festive finish. Historically, the second half of December ranks as the second-strongest period for U.S. stocks, buoyed by seasonal factors like bonus-driven investments, tax optimization trades, and reduced corporate news. Since 1950, December has been the second-best performing month for the S&P 500, with gains occurring 74% of the time—rising to 83% during presidential election years, according to Bank of America.

In 2024, stocks soared amid the AI boom, but recent Federal Reserve actions, including firm stances on interest rates, rattled markets. Analysts still anticipate a late-month rally, though any failure to deliver could signal broader trouble. Past holiday dips in 1999 and 2007 preceded major downturns.

Bank of America noted hedging for a year-end rally is historically affordable, but retail traders should beware of heightened risks from lower holiday trading volumes, which can amplify price swings.

FINANCE
Undervalued Stocks Drive Global Strategy

Jordan Cvetanovski, portfolio manager at Pella Funds, highlights Chinese and European stocks as strong opportunities despite global market uncertainty. Pella Funds recently increased its exposure to China by over 10%, targeting undervalued companies that stand to benefit from fiscal stimulus measures. Cvetanovski identified firms like robot maker Midea Group, Hong Kong Exchanges, and life insurer AIA Group as top picks, emphasizing their strong execution and growth potential.

China’s recent five-year, 10 trillion yuan ($1.37 trillion) stimulus package aims to address debt issues and revive economic growth. While further economic support is expected in 2025, Cvetanovski believes these investments remain promising even without additional measures.

In Europe, Pella Funds sees opportunities in undervalued companies navigating political instability. Examples include Schneider Electric, benefiting from the AI boom and digital transition, U.K.’s Spirax Group, and Swedish manufacturer Epiroc, poised to capitalize on mining sector growth. Cvetanovski suggests these investments offer attractive valuations compared to U.S. stocks.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.