MicroStrategy, Thunder Gold, C3.ai – These are the favorites

MicroStrategy continues to buy

The latest minor correction in Bitcoin hit the world's largest hodler hard. After reaching highs of USD 543, MicroStrategy's stock lost around 33% and is currently trading at USD 372.00. A further slide in the leading cryptocurrency could lead the stock back to the breakout level following Trump's victory at around USD 275, potentially closing an existing upward gap. From a valuation perspective, a further correction would be justified, as the Company, founded by Michael Saylor, trades at a premium of 2.11 times the base value when adding up its Bitcoin holdings.

MicroStrategy took advantage of the recent consolidation to further increase its holdings. No surprise, as company founder Michael Saylor expects prices to reach beyond USD 1 million. Even at that level, he would still be on the buy side, as stated in an interview on Yahoo Finance.

MicroStrategy acquired 21,550 Bitcoins at a total price of USD 2.1 billion between December 2 and December 8. The average purchase price was USD 98,783 per coin, as the Company announced on December 9.

As of December 8, MicroStrategy holds a total of 423,650 Bitcoins in its portfolio, which were purchased at a total value of USD 25.6 billion and an average purchase price of USD 60,324 per Bitcoin, the current chairman explained on the X platform.

Thunder Gold – Promising player from the second row

The price of gold also reached new highs this year at USD 2,790 per ounce. However, shares of producers and exploration companies benefited little from this. According to experts, the yellow metal is likely to continue its upward trend in the long term and mark prices beyond the USD 3,000 mark. Historically, smaller explorers tend to lag initially in a long-term upward cycle but then follow with greater momentum. From this perspective, it is currently advisable to take a closer look at interesting second-tier companies such as Thunder Gold.

It is interesting to look at the stock chart of the Canadian company, which is valued at CAD 10.34 million. For years, the price has been moving sideways, with the bottom at CAD 0.025 being confirmed three times. Since the last test in July of this year, the share price has doubled to CAD 0.05. The long-term downward trend established in 2008 runs at 0.08 CAD. Should this be breached sustainably, not only would the bottoming-out phase be completed, but a strong buy signal would also be generated. The next price target would then be CAD 0.165, the high from 2021.

Thunder Gold is developing the 2,500-hectare Tower Mountain gold property, located approximately 50 km west of Thunder Bay in the province of Ontario. Tower Mountain surrounds the largest exposed intrusive complex in the eastern Shebandowan greenstone belt, where gold occurrences are commonly found in or near intrusive rocks.

The Company acquired the property in 2020, attracted by the widely distributed gold grades indicated by the 27,000 metres of historical drilling completed by others from 1988 through 2011. Since acquiring the property, the Company has added 13,000 metres of additional drilling, verifying the historical results, all of which occur along the western margin of the intrusive core. The drill results suggest average gold grades between 0.80 to 1.20 g/t Au with maximum values of up to 941 g/t Au. Recent channel samples at the P target, located along the eastern margin of the intrusive center, returned an average value of 4.93 g/t Au over 24.87 m, including a section of 9.12 g/t Au over 12.66 m – the longest continuously mineralized section to date above a cutoff grade of 1.0 g/t Au on the Tower Mountain property. In addition, other samples returned grades between 1.28 and 5.44 g/t Au, with more than 82% of the reported intervals grading higher than 0.30 g/t Au – a frequency that is three times higher than the 40,000 drill core samples collected to date.

The management, led by CEO Wes Hanson, currently estimates the discovered gold resource at 1.25 to 1.5 million ounces and aims to prove more than 2 million ounces. If this goal is achieved, Thunder Gold could become an attractive takeover candidate for larger gold producers.

C3.ai – Better than expected

The Company, which specializes in enterprise AI software and was founded by Tom Siebel in 2009, has been one of the absolute outperformers on the market in recent weeks. Since the year's low at the beginning of September, the stock has performed around 127% on the trading floor. The recently announced expansion of the strategic partnership with tech giant Microsoft and its subsidiary Azure, which are working on the rapid integration of AI services at the enterprise level, provided a tailwind.

On Monday, after the market closed, C3.ai reported better-than-expected Q2 figures. Revenues rose by 28.8% year-on-year to USD 94.3 million, exceeding forecasts by USD 3.3 million.

Although the Company continues to operate at a loss, the adjusted loss per share was significantly lower than expected. Instead of the forecasted -USD 0.16 per share, the loss amounted to only -USD 0.06 per share. By contrast, the net result shows little improvement. The GAAP net loss decreased slightly compared to the same quarter last year, from nearly USD 70 million to around USD 66 million. This corresponds to a loss of -USD 0.52 per share.

For the coming quarter, management is forecasting revenues of USD 98 million, which is slightly above previous estimates. The loss is expected to be between USD -38.6 and -46.6 million. By the end of the current fiscal year, total revenues of USD 388 million are expected, which exceeds expert forecasts by around USD 5.4 million.

C3.ai, a company specializing in enterprise AI, published better-than-expected quarterly figures. MicroStrategy continues to increase its holdings of Bitcoin despite record highs. Thunder Gold has posted outstanding drilling results and is on the verge of breaking the long-term downward trend.