Microstrategy's Stock Soars 206% Since Adopting Bitcoin Strategy

Microstrategy’s stock (Nasdaq: MSTR) has risen 206% after the company adopted bitcoin as its primary treasury reserve asset. The business intelligence firm now holds 152,800 bitcoins, acquired for a total cost of $4.53 billion, and it has plans to buy even more.

Microstrategy’s Stock Outperforms Bitcoin, S&P500, Nasdaq, Gold, Silver

The stock of business intelligence firm Microstrategy (Nasdaq: MSTR) has risen 206% since the company adopted its bitcoin strategy, Executive Chairman Michael Saylor stated on Twitter Friday. He tweeted:

Three years ago today Microstrategy announced that it had adopted bitcoin as its Primary Treasury Reserve Asset, purchasing 21,454 BTC for $250 million, or ~$11,653 per bitcoin.

Microstrategy adopted its bitcoin strategy on Aug. 10, 2020. In comparison, during the same time period, bitcoin has experienced a 145% increase, while the S&P 500 has risen 33% and the Nasdaq 25%, according to a chart Saylor shared on Twitter. Meanwhile, gold has seen a decline of 5%, and silver has decreased 19%.

Blackrock, the world’s largest asset manager, is a major shareholder of Microstrategy. In February, Blackrock disclosed that it owns 760,000 shares of Microstrategy Incorporated, which represents 8.1% of the company. The asset manager is also trying to launch a bitcoin exchange-traded fund (ETF).

Earlier this month, Microstrategy disclosed that it now holds 152,800 bitcoins, acquired for a total cost of $4.53 billion, or $29,672 per BTC. The company is also planning to buy more BTC with stock sales of up to $750 million.

Saylor explained in August 2020 that his company’s bitcoin strategy “seeks to maximize long-term value” for shareholders. He described the world’s largest cryptocurrency as “a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.” The executive added: “Since its inception over a decade ago, bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions.”

What do you think about Microstrategy’s approach to bitcoin? Let us know in the comments section below.

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