MicroStrategy’s Bitcoin Holdings Propel Stock Surge
Software company MicroStrategy is experiencing a surge in its stock price as it continues to accumulate Bitcoin at a rapid rate. The publicly listed firm, trading under the ticker MSTR on the Nasdaq, saw its stock rise by nearly 14% in a 24-hour period, reaching as high as $1,610 per share. Although it has since settled at $1,484, representing a more modest 4% gain, the stock is still up 106% for the month.
Since MicroStrategy began its Bitcoin strategy in 2020 by adding the cryptocurrency to its balance sheet, the price of Bitcoin has skyrocketed by over 912%. The highest recorded price was in 2000 when it traded at $3,130.
MicroStrategy’s Growing Bitcoin Holdings
MicroStrategy recently announced that it has further increased its Bitcoin holdings, making it the company with the most Bitcoin among publicly traded firms. With over $14.8 billion worth of “digital gold,” MicroStrategy now holds more than any other company in this space. Its BTC stash exceeds 200,000, surpassing BlackRock’s spot Bitcoin ETF that holds 195,985 Bitcoins.
Bitcoin Hits All-Time High
In addition to MicroStrategy’s success, Bitcoin itself reached another all-time high with a price of $72,201 per coin according to CoinGecko data.
MicroStrategy’s Chairman: “Bitcoin Will Surpass Gold”
Michael Saylor, co-founder and chairman of MicroStrategy, believes that Bitcoin will eventually outperform gold in terms of market capitalization. He suggests that investing in MicroStrategy stock is a good way to gain exposure to this asset and describes the company as a “Bitcoin development company.” Saylor highlights the advantages of Bitcoin as a digital asset, stating that it trades 168 hours a week compared to other assets that are only traded for less than 20% of the time.
MicroStrategy’s Bitcoin Strategy
The software company initially purchased BTC in August 2020, with the intention of providing shareholders with better returns compared to holding cash. Since then, MicroStrategy has continued to acquire Bitcoin in bulk. Following MicroStrategy’s lead, other companies such as Tesla have also started adding Bitcoin to their balance sheets.
Hot Take: MicroStrategy’s Bitcoin Bet Pays Off
MicroStrategy’s bold move to invest heavily in Bitcoin has proven to be highly successful. By accumulating a significant amount of the cryptocurrency, the company has not only seen its stock price surge but has also become the largest holder of Bitcoin among publicly traded firms. This strategy has paved the way for other companies to follow suit and embrace Bitcoin as a valuable asset.
By
By
By