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MicroStrategy rose to prominence when it began buying bitcoin publicly in 2020. While it is not the only publicly traded company doing this, the company's aggressive bitcoin strategy sets it apart from the rest. Four years later, MicroStrategy is now the public company with the largest btc holdings in the world, posting over $5 billion in profits so far. However, gains from btc holdings are not the only positive thing to come from the company's bitcoin investment strategy.
MicroStrategy Share Price Explodes
MicroStrategy's MSTR share price has completed an incredibly successful year in which it has served as the stock market's heavy hitter. A year ago, MSTR's share price was at a low of $45. However, as the price of bitcoin recovered and the company's btc portfolio grew, so did the company's share price.
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In just one year, the price rose more than 317% to reach a new all-time high of $192 in March 2024, according to data from TradingView. This put it above its previous February 2000 high of $139, making it its highest level in more than two decades. Interestingly, the rise to the all-time high of $192 in March coincided with bitcoin's all-time high of $73,750 in the same month.
This suggests that the bitcoin-microstrategy/” rel=”nofollow”>MicroStrategy stock price is closely correlated with bitcoin price performance. It is understandable given that bitcoin has become the largest holding in the company, which means that as the price of bitcoin increases, the valuation of the company also increases, resulting in an increase in the share price. .
It currently sits at $167 at the time of writing, which means it is 16% below its all-time high of $192. However, it is still 250% higher than its price level of $45 a year ago. This puts it ahead of companies like Apple, which is up just 24% year-to-date, and amazon, up 34% year-to-date. Even NVIDIA's excellent performance falls behind MicroStrategy, up 155% year-to-date.
Filling up with bitcoin
Despite four years having passed, MicroStrategy is not giving up on its bitcoin purchases, with significant purchases this year. In 2024 alone, the company purchased 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 raised the company's total btc holdings to 252,200 for a whopping cost price of $9.9 billion.
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Despite the already huge holding of bitcoin, which represents more than 1,166% of the total supply, MicroStrategy plans to continue purchasing btc. The company announced that it was bitcoin-700-million-fundraise/” target=”_blank” rel=”nofollow”>offering $700 million in convertible noteswhich was later modified to $1 billion, the proceeds of which would be used to purchase more btc.
Regarding the company's plan for its huge btc reserve, Saylor has stocks-buy-500-m-bitcoin/” rel=”nofollow”>revealed that the company has no plans to sell anytime soon. For now, the bitcoin-decline-a-20-discount-sale-saylor-says/” rel=”nofollow”>The plan seems to be to buy as much btc as possible. possible to maintain as a treasury asset.
Featured image created with Dall.E, chart from Tradingview.com
