MicroStrategy (MSTR) was among the first companies to hold Bitcoin (BTCUSD) on its balance sheet in June 2020. Today, several other compnanies hold the digital asset, as they view Bitcoin as a store of value and a hedge against inflation despite its underlying volatility. While MicroStrategy is the largest institutional holder of Bitcoin, one little-known penny stock is also accumulating the world’s largest cryptocurrency.
Valued at a market capitalization of just $20 million, MicroCloud Hologram (HOLO) engages in the research and development, and application of holographic technology. It also provides holographic digital twin technology services. Recently MicroCloud announced a significant investment of up to $200 million in Bitcoin and cryptocurrency-related securities derivatives. So, let’s see if this penny stock is the next MicroStrategy.
Should You Buy This Penny Stock Right Now?
MicroCloud currently holds $303 million in cash reserves, which it plans to allocate toward derivatives and technology development in emerging fields, including Bitcoin-related blockchain, quantum computing, quantum holography, and AI-powered AR.
MicroCloud explained that the purchased Bitcoin and derivatives will be incorporated into its capital reserve strategy, which aims to enhance financial stability and long-term growth through diversified investments.
Moreover, this initiative might help MicroCloud gain valuable insights into cryptocurrency market mechanisms, price fluctuations, and investment strategies. The company emphasized it will maintain a “prudent” business approach.
The Bull Case for Investing in HOLO Stock
MicroCloud Hologram tackles emerging fields like holographic technology applications, providing comprehensive software and hardware solutions across multiple industries. Its core technologies currently serve holographic software and content services, intelligent automobile holographic electronics, holographic cloud data processing, and intelligent visual services markets.
MicroCloud has built an impressive intellectual property portfolio with 22 holographic chip design patents focused on digital twin visual imaging, 6D action capture, and digital image collection technologies.
It also holds 312 holographic software copyrights covering quantum dynamics, digital light field technology, 6D panoramic display, virtual human applications, 183 holographic patents, and 1,695 holographic content copyright works.
The company serves diverse industries, including internet advertising, culture, industrial applications, audio-video production, and automotive electronics manufacturing, positioning itself for continued broad market expansion.
For investors, this is a potentially high-risk, high-reward investment. There are no analysts that cover HOLO stock, as tracked by Barchart. This means that investors interested in its holographic solutions or Bitcoin strategy will be paving their own way.
