MicroStrategy’s Bitcoin Bet Pays Off In Multiple Ways As Stock Surges 317%
September 27 2024 - 8:30AM
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MicroStrategy was shot into the limelight when it began publicly
buying Bitcoin back in 2020. While it is not the only publicly
listed company to do this, the company’s aggressive Bitcoin
strategy set it apart from the rest. Four years later,
MicroStrategy is now the public company with the largest BTC
holdings in the world, recording over $5 billion in profit so far.
However, the profit on the BTC holdings is not the only positive
that has come from the company’s Bitcoin investment strategy.
MicroStrategy’s Stock Price Blows Up MicroStrategy’s MSTR stock
price has completed an incredibly successful year that has seen it
perform the big hitters in the stock market. A year ago, the MSTR
stock price was sitting at a low of $45. However, as the Bitcoin
price recovered and the company’s BTC portfolio grew, so did the
company’s stock price. Related Reading: Crypto Analyst Predicts
What Will Drive The Ethereum Price Back Above $3,000 Again In only
one year, the price surged more than 317% to reach a new all-time
high of $192 back in March 2024, according to data from
TradingView. This put it above its previous February 2000 peak of
$139, making it its highest level in more than two decades.
Interestingly, the surge to the $192 all-time high in March
coincided with the the Bitcoin all-tine high of $73,750 in the same
month. This suggests that the MicroStrategy stock price is closely
correlated with the Bitcoin price performance. It’s understandable
given that Bitcoin has become the company’s largest holdings,
meaning that as the Bitcoin price rises, so does the valuation of
the company, translating to an increase in the stock price.
Currently sitting at $167 at the time of this writing, meaning it’s
16% down from its $192 all-time high. However, it is still 250%
higher than its $45 price level a year ago. This puts it ahead of
the likes of Apple which is up only 24% year to date and Amazon,
with a 34% year-to-date increase. Even NVIDIA’s outstanding
performance falls behind MicroStrategy, with a 155% year-to-date
increase. Padding Up With Bitcoin Despite being four years in,
MicroStrategy is not letting up on its Bitcoin purchases, with
major purchases this year. In 2024 alone, the company has bought
63,079 BTC which cost around $4.04 billion to acquire. The most
recent purchase was on September 20, when former CEO Michael Saylor
announced that the company had purchased 7,420 BTC for $489
million. This has brought the company’s total BTC holdings to
252,200 for a whopping cost price of $9.9 billion. Related Reading:
Dogecoin Eyes Bullish 50% Rally To $0.16, But Will A Crash Come
First? Despite the already massive Bitcoin holding, accounting for
more than 1.166% of the total supply, MicroStrategy plans to
continue buying BTC. The company announced it
was offering $700 million in convertible notes, which was
later amended to $1 billion, the proceeds of which would be used to
purchase more BTC. As for the company’s plan for its massive BTC
stash, Saylor has previously revealed that the company has no plans
of selling soon. For now, the plan looks to be to buy as much BTC
as possible to hold as a treasury asset. Featured image created
with Dall.E, chart from Tradingview.com
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