Bitcoin Soars 70% in 2023, MicroStrategy Profits from Holdings
Bitcoin has experienced a remarkable resurgence this year, with a 70% increase since the start of 2023, pushing its price to $35,000. MicroStrategy, the world’s largest corporate holder of Bitcoin, has been reaping the rewards of its Bitcoin holdings, which were acquired at an average price of less than $30,000.
During an interview with Fox Business, MicroStrategy CEO Michael Saylor shared his insights on how companies can compete with the “Magnificent Seven” and protect their capital. The Magnificent Seven refers to the seven companies responsible for the majority of the S&P 500’s impressive 13% year-to-date increase: Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla. Only Tesla currently holds Bitcoin on its balance sheet.
Saylor suggested that companies should adopt a Bitcoin strategy similar to MicroStrategy’s in order to reward shareholders more effectively. He argued that many companies are grappling with inflation, high-interest rates, and technology-driven deflation. By incorporating Bitcoin into their balance sheets, companies can break free from the traditional corporate finance playbook and create shareholder value.
MicroStrategy continues to add to its Bitcoin holdings three years after initially entering the market. Just last week, the company purchased an additional 155 BTC worth $5.3 million. Saylor highlighted Bitcoin’s exceptional performance over the years and shared a total returns chart that demonstrated a cumulative return of 1,120,785% from 2011 to 2023.
In conclusion, Saylor believes that Bitcoin presents a groundbreaking opportunity for companies to safeguard their capital and enhance shareholder value. By integrating Bitcoin into their financial strategies, companies can escape the costly cycle of acquisitions, stock buybacks, dividends, and debt.
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