Forget Bitcoin, MicroStrategy is up 500% this year, and Michael Saylor explains how the stock has outperformed its underlying assets

As crypto bulls wait for Bitcoin to reach the $100,000 level, they may also want to consider a company that owns nearly 400,000 tokens.

MicroStrategy has been cashing in on Bitcoin, for better or worse, after co-founder and CEO Michael Saylor tied the software company’s fortunes to the cryptocurrency in 2020.

Recently, his bet has proven to be very profitable. Year to date, MicroStrategy stock is up 513%, even as shares retreat from post-election highs that briefly lifted them nearly 700%.

Either way, this is much higher than Bitcoin’s gain in 2024 of about 117%. In fact, MicroStrategy’s market capitalization of $87 billion is more than double the value of its holdings of 386,700 bitcoins, which are worth $37.6 billion at current prices (and were largely purchased at a fraction of the going price).

Recently Interview with Wall Street JournalSaylor explained why there is such a big gap between MicroStrategy and Bitcoin stocks.

“MicroStrategy found a way to outperform Bitcoin,” he said. “The way we outperform Bitcoin, in essence, is that we are just enhancing Bitcoin.”

The company has been an aggressive buyer of Bitcoin and has not been shy about raising new funds via equity or debt to buy more. Last month, that Amplify the supply of convertible notes To add to its purchasing power.

This is part of an aggressive plan to raise $42 billion in stock and bond offerings over three years to continue buying bitcoins, according to… magazine.

There are skeptics, for sure. Last month, Citron Research said it was bullish on Bitcoin but it was MicroStrategy shortening Even as he praised Saylor for his “insightful” strategy.

“All respect to @saylor, but even he should know $MSTR is overheating,” Citron posted on the site. X.

But wherever MicroStrategy stock or Bitcoin goes from here, Saylor embraces volatility and isn’t afraid to stick his neck out. Even before the Bitcoin boom, He once lost $6 billion in one day During the dot-com bust.

As Saylor recalled how he came up with his Bitcoin strategy in 2020, he told… magazine It’s “either die quickly or die slowly, or take a risk, do something outside the box.”

This story originally appeared on Fortune.com