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MicroStrategy was caught in the limelight when it began openly buying Bitcoin in 2020. While it is not the only publicly listed company to do so, 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, recording more than $5 billion in profits to date. However, the profit on BTC Holdings is not the only positive that has come from the company’s Bitcoin investment strategy.
MicroStrategy stock price explodes
MicroStrategy’s MCTRSTY stock price has completed an incredibly successful year that has seen the stock market’s big hitters perform. A year ago, MSTR’s stock price was sitting at $45. However, as the price of Bitcoin recovered and the company’s BTC wallet grew, so did the company’s stock price.
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In just one year, the price has risen more than 317% to reach a new all-time high of $192 in March 2024, according to Data From TradingView. This puts it above the previous peak reached in February 2000 at $139, making it its highest level in more than two decades. Interestingly, the increase to an all-time high of $192 in March coincided with Bitcoin All-Tine’s high of $73,750 in the same month.
This indicates that the Microstrategy stock price It is closely related to Bitcoin’s price performance. It is understandable given that Bitcoin has become the company’s largest holding, meaning that as the price of Bitcoin rises, the company’s valuation also rises, translating into an increase in the stock price.
It currently sits at $167 at the time of writing, meaning it is down 16% from its all-time high. However, it is still 250% above the $45 price level a year ago. This puts it ahead of the likes of Apple, which is up just 24% year to date, and Amazon, which is up 34% year-to-date. Even Nvidia’s premium performance lags behind MicroStrategy, with a 155% year-over-year increase.
Stuffing with Bitcoin
Despite being four years old, MicroStrategy is not giving up on Bitcoin purchases, with significant purchases this year. In 2024 alone, the company bought 63,079 BTC which costs around $4.04 billion to acquire. The last purchase was on September 20, when former CEO Michael Saylor announced that the company had purchased 7,420 BTC for $489 million. This brought the company’s total BTC Holdings to 252,200 for a whopping cost price of $9.9 billion.
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Despite already owning a huge supply of Bitcoin, which represents over 1,166% of the total supply, MicroStrategy plans to continue buying Bitcoin. The company announced that it was Offering $700 million in convertible securitieswhich was later revised to $1 billion, the proceeds of which will be used to purchase more Bitcoin.
As for the company’s plan regarding its huge stock of Bitcoin, Saylor has previously spoken about it open The company has no plans to sell soon. Now, and The plan appears to be to buy as much BTC as possible As much as possible to keep them as treasury assets.
Featured image created with Dall.E, chart from Tradingview.com