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MicroStrategy was thrust into the spotlight when it started publicly buying Bitcoin in 2020. While it’s not the only publicly traded company to do this, the company’s aggressive Bitcoin strategy set it apart from the rest. Four years later, MicroStrategy is now the publicly traded company with the largest BTC holdings in the world, with profits of over $5 billion to date. However, the gains on the BTC investments are not the only positive outcome of the company’s Bitcoin investment strategy.
MicroStrategy’s stock price skyrockets
MicroStrategy’s MSTR share price has had an incredibly successful year, with the company seeing great success in the stock market. A year ago, MSTR’s stock price was 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.
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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 facts from TradingView. This took the price above the previous peak of $139 in February 2000, making it the highest level in more than two decades. Interestingly, the rise to an 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 MicroStrategy stock price is closely correlated with Bitcoin’s price performance. It is understandable considering that Bitcoin has become the company’s largest asset, meaning that as the Bitcoin price rises, so does the company’s valuation, which translates into an increase in its stock price.
It currently stands at $167 as of this writing, meaning it is down 16% from its all-time high of $192. However, it is still 250% higher than the $45 price level a year ago. This puts it ahead of Apple, which is up just 24% so far, and Amazon, which is up 34% this year. Even NVIDIA’s stellar performance lags behind MicroStrategy, up 155% year-to-date.
Fill with Bitcoin
Despite it being four years ago, MicroStrategy is not abandoning its Bitcoin purchases, with major purchases this year. In 2024 alone, the company purchased 63,079 BTC, which cost approximately $4.04 billion to acquire. The most recent purchase took place 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, at a whopping cost of $9.9 billion.
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Despite its already massive Bitcoin holdings, accounting for more than 1,166% of the total supply, MicroStrategy plans to continue buying BTC. The company announced this offering $700 million in convertible noteswhich was later changed to $1 billion, the proceeds of which would be used to buy more BTC.
As for the company’s plan for its massive BTC stash, Saylor has done so before revealed that the company has no plans to sell anytime soon. For now the The plan seems to be to buy as much BTC as possible possible to hold as a treasury investment.
Featured image created with Dall.E, chart from Tradingview.com