Close menu




July 5th, 2023 | 07:40 CEST

Cryptos and precious metals with buy signals - MicroStrategy, Defiance Silver, Bitcoin Group

  • Mining
  • Silver
  • Gold
  • Bitcoin
  • crypto
  • Technology
Photo credits: pixabay.com

According to the biggest Bitcoin bull in the universe, co-founder of software maker MicroStrategy Michael Saylor, the largest cryptocurrency should increase a hundredfold in the next few years. That this statement is bold is beyond question. Nevertheless, despite regulatory measures by the SEC against Bitcoin and Binance, Bitcoin is building enormous momentum and is on the verge of another strong buy signal. The odds are similarly favorable for precious metals, gold and silver.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: MICROSTRATEG.A NEW DL-001 | US5949724083 , DEFIANCE SILVER CORP. | CA2447672080 , BITCOIN GROUP SE O.N. | DE000A1TNV91

Table of contents:


    MicroStrategy continues to build

    The man has nerves of steel and stuck to his bullish opinion even during the crypto winter of the past two years when Bitcoin temporarily traded below USD 16,000. In a Bloomberg interview, Michael Saylor, co-founder and long-time CEO of MicroStrategy, the Company with the largest Bitcoin holdings globally, commented on the future of the largest cryptocurrency. According to him, there is only one direction: "North". For him, Bitcoin is the only institutionally investable asset in the crypto sector, while he rejects investments in altcoins.

    Bitcoin Hodler sees the current SEC measures against Binance and Coinbase as positive for the development of Bitcoin. Additional driving forces for the rising virtual currency are the upcoming bitcoin halving in April 2024 and the increased hash rate.

    For about USD 347 million, MicroStrategy acquired another 12,333 BTC last month at an average price of USD 28,136. That brings the Company's total holdings to 152,333 BTC at an entry price of USD 29,688, representing a total value of USD 4.73 billion. MicroStrategy's market capitalization is USD 4.90 billion. Thus, at current levels, the profitable software business comes for free.

    Defiance Silver - Best positioned

    The precious metals markets are also sending positive signals. Gold held its ground at the psychologically important USD 1900 mark and has since been turning upwards. Silver has been in an intact upward trend since August 2022 and should generate a strong buy signal if the resistance at USD 24.50 is exceeded. Exploration companies like Defiance Silver benefit disproportionately from a long-term bull market, especially if one takes a closer look at the company's positioning.

    With a market capitalization of CAD 36.45 million, a cash balance of around CAD 8 million and drill programs funded through for the current year, the main focus of the management, which is equipped with decades of experience, is on the historic Zacatecas silver district, historically Mexico's largest silver producer with 6.2 billion ounces produced. Defiance Silver's properties, including the highly prospective San Acacio project and the 100% owned Lagartos mine, are close to the deposits of producers such as Pan American Silver, Fresnillo, Newmont and Agnico Eagle. In addition, the Company still holds options on the Lucita and Panuco properties.

    For San Acacio, an initial resource estimate of 16.9 million ounces of silver based on 44 drill holes totaling 10,200 m has already been determined. Since then, an additional 20,000 m has been drilled, and significant intersections outside the current resource have been identified. The recent results from 4 of 10 targets showed outstanding values. For example, drilling encountered the highest grade and widest mineralization ever drilled on the property, with top grades of 157.30 g/t silver over 41.83 m, including 15.96 m of 379.90 g/t silver.

    Defiance Silver Chairman and CEO Chris Wright stated that due to the diligent target acquisition and modeling work, the continued potential had been demonstrated to outline a large mineral system within the historic San Acacio mine area on the Veta Grande vein system. Defiance Silver's shares, which trade in Frankfurt and Toronto, have been trading sideways at CAD 0.16 for months. The highest price was recorded in May 2021 at CAD 1.07.

    Bitcoin Group - Undervalued crypto player

    The German holding company, focusing on innovative and disruptive business models and technologies from the areas of cryptocurrencies and blockchain, also lost ground in the past fiscal year. Revenues decreased to EUR 8.34 million after EUR 25.39 million. EBITDA was EUR 1.37 million, down from EUR 19.75 million as of December 31, 2021. In addition, earnings per share fell into negative territory at minus EUR 0.48, down from a prior-year profit of EUR 2.67 per share.

    Bitcoin Group's balance sheet position remains strong despite the cloudy fiscal year. The equity ratio increased from 72.99% in 2021 to 77.23% now. Cash balances decreased to EUR 14.88 million from EUR 20.28 million as of the 2021 balance sheet date.

    A more detailed analysis is required for the net crypto holdings of the Bitcoin Group. As of the end of 2022, these stood at EUR 70.8 million, compared to EUR 181.1 million in the previous year. However, the price of Bitcoin has increased by around 90% since then, while Ethereum has increased by around 65%. Estimating a Bitcoin to Ethereum share of around 90% of the holdings would result in a value of around EUR 148 million.

    Not included is the 100% stake in futurum bank AG, which operates a trading platform for digital currencies under Bitcoin.de, and 50% of the shares in Sineus Financial Services GmbH, a financial services provider supervised by BaFin. In contrast, the stock market value of Bitcoin Group is only EUR 113.50 million.


    Cryptocurrencies are poised for an auspicious comeback after a sharp correction. MicroStrategy, the Company with the world's largest Bitcoin holdings, continues to expand. In contrast, Bitcoin Group's portfolio has a much higher value than its current market cap. Defiance Silver is well positioned and should benefit disproportionately if precious metal prices continue to rise.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Armin Schulz on May 21st, 2024 | 07:15 CEST

    K+S, Globex Mining, Barrick Gold - Commodity stocks: Make money now

    • Mining
    • Gold
    • Commodities
    • fertilizer

    The commodities market in 2024 is characterized by high volatility, driven by strong demand, supply bottlenecks, and technological shifts to renewable energy, which make lithium and copper, for example, more expensive. In addition, inflation concerns make precious metals attractive as a hedge against inflation, while the central banks' interest rate policy is also a factor. Geopolitical tensions further disrupt supply chains and drive up prices. In this context, investments in commodity shares are becoming increasingly important. This form of investment allows investors to benefit indirectly from price fluctuations and the increase in the value of commodities without having to physically invest in the commodities themselves. We are, therefore, looking at three commodity companies today and analyzing their potential.

    Read

    Commented by Stefan Feulner on May 21st, 2024 | 07:00 CEST

    Lynas, Almonty Industries, General Motors - Is the trade war escalating, and what is Tesla doing?

    • Mining
    • Tungsten
    • Electromobility
    • RareEarths

    The stock markets continue their record-breaking run. The Dow Jones Industrial has climbed to the 40,000-point mark for the first time in its history, and the DAX is also on the verge of breaking through the 19,000-point barrier. So far, so good, one might say. However, something is brewing in the background with regard to the trade war between the US and China, which could put enormous pressure on company margins in the future. As a result, critical commodities, in particular, are likely to be on the verge of a strong upward impulse.

    Read

    Commented by Juliane Zielonka on May 17th, 2024 | 07:00 CEST

    Almonty, Rheinmetall, Super Micro Computer - Commodity rally for defense and cloud

    • Mining
    • Tungsten
    • AI
    • Defense

    AI and defense stocks are setting the stock market on fire. Investors worldwide seem to have acquired a taste for artificial intelligence and defense. Wall Street is expecting a four-digit price target for Super Micro Computer soon. Rheinmetall is also enjoying full order books. Since the takeover of a Spanish ammunition manufacturer, production has also increased in this segment. Meanwhile, tensions between the largest economies, the USA and China, are growing enormously, which is reason enough for investors to take a look at Almonty Industries. The tungsten producer is on course for growth thanks to the restart of a mine in South Korea. Tungsten is rising in value as the increase in AI, and armaments are directly boosting demand for the rare earth metal. Who will win the stock market race?

    Read