Key Insights
- MicroCloud Hologram stock price has crashed this year.
- It is an undervalued Bitcoin treasury company with a NAV multiple of 0.25.
- The company may have a short-squeeze as its short-interest has jumped to 20%
MicroCloud Hologram stock price has crashed close to a record low, even after the Chinese company started to accumulate Bitcoin. The HOLO stock was trading at $4.70 on Thursday, bringing the year-to-date performance to minus 97%.
Still, there are a few reasons why it may be a good Bitcoin treasury stock to buy.
MicroCloud Hologram Stock is Undervalued
MicroCloud Hologram is a relatively small Chinese company building solutions like holographic light detection and ranging (LiDAR) systems. These solutions are used in the automobile industry.
Like many companies, MicroCloud decided to venture into the Bitcoin Treasury sector, aiming to emulate the success of Strategy (MSTR). It hopes to benefit from the potential Bitcoin price surge.
The company has started to accumulate BTC and now has 2,353 coins, currently valued at over $279 million. Most notably, unlike other companies, MicroCloud used cash on hand to accumulate these coins instead of borrowing.
The average cost of buying these coins was $84,000, meaning that the company has already had a 41% gain on its investment.
There are signs that the company is highly undervalued because of its stock collapse. It has a market capitalization of $68 million, much lower than its Bitcoin holdings of $279 million.
Additionally, MicroCloud Hologram has a net asset value (NAV) multiple of 0.245. This figure is calculated by the market capitalization divided by the value of its Bitcoin holdings.
A 0.245 multiple is smaller than that of other Bitcoin treasury companies like MicroStrategy and Metaplanet. Strategy has a multiple of 1.55 as its Bitcoin holdings are worth $74.5 billion against its market cap of $116 billion.
Similarly, Metaplanet has a NAV multiple of 2.54, while Mara Holdings and Riot Platforms have multiples of over 2. Therefore, based on these metrics, there are signs that HOLO stock is cheap.
MicroCloud’s Core Business is Improving
The other potential catalyst for the MicroCloud stock is that its business is improving. Its recent annual report showed that its annual revenue rose from 203 million RMB in 2023 to 290 million RMB. That’s equivalent to $40.7 million.
The revenue growth occurred even though the LiDAR industry is one of the most competitive sectors in the automotive industry. Some of the top competitors in the sector are Luminar, Hesai, RoboSense, and Huawei Technologies.
MicroCloud also narrowed its losses, and the management has noted that profitability is possible. Its net loss narrowed from RMB 81.5 million to RMB 64.2 million or $8.8 million.
Bitcoin Price Performance and a Potential Short Squeeze
Bitcoin could be on the cusp of a strong bullish breakout, and it could be another potential catalyst for the MicroCloud Hologram stock price.
BTC price, as the chart below shows, has formed a bullish pennant pattern, while the spread of the three lines of the Bollinger Bands has narrowed. That could lead to a strong Bitcoin rebound in August, which will make MicroCloud Hologram’s Bitcoin holdings more valuable.
Additionally, the company will benefit from the potential meme stock mania in the USA. It is a period where highly-shorted companies go parabolic, as we saw recently with GoPro and OpenDoor. MicroCloud Hologram is popular in the meme coin community and has a short interest of 20%.
Technicals also suggest that the MicroCloud Hologram share price could be in the accumulation phase of the Wyckoff Theory.
This phase is characterized by low volume and sideways movements. It is then followed by the markup phase, which has high demand and parabolic moves.
Can MicroCloud Hologram Stock Price Go Up?
MicroCloud Hologram stock price has fallen, but its valuation metrics show that the company’s value is low, as its market cap is lower than its Bitcoin holdings. It could benefit from a potential BTC price breakout and the fact that its stock is in the accumulation phase of the Wyckoff Theory.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
