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MicroStrategy came into the spotlight when it began publicly purchasing Bitcoin in 2020. While it’s 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 a public company with the largest BTC holdings in the world, having reported over $5 billion in profits to date. However, the profit from BTC shares is not the only positive that has resulted from the company’s Bitcoin investment strategy.
MicroStrategy stock prices are soaring
MicroStrategy’s MSTR shares concluded an extremely successful year in which the company achieved its greatest successes on the stock exchange. A year ago, the MSTR stock price was at a low of $45. However, as the price of Bitcoin increased and the company’s BTC portfolio increased, the company’s stock price also increased.
According to the data, in just one year the price increased by over 317% to reach a modern all-time high of $192 in March 2024. data from TradingView. This means it has surpassed its previous February 2000 high of $139, making it the highest level in more than two decades. Interestingly, the surge 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 MicroStrategy share price is closely correlated with Bitcoin price performance. This is understandable given that Bitcoin has become the company’s largest holding, which means that as the price of Bitcoin increases, the company’s valuation increases, which translates into an escalate in the share price.
As of this writing, the amount is currently $167, down 16% from the all-time high of $192. However, it is still 250% higher than the price of $45 a year ago. That puts it ahead of companies like Apple, which is up just 24% year-to-date, and Amazon, which is up 34% year-over-year. Even NVIDIA’s exceptional performance lags behind MicroStrategy, growing 155% year-to-date.
Top-up with Bitcoin
Despite four years of existence, MicroStrategy is not giving up on Bitcoin purchases, making larger purchases this year. In 2024 alone, the company purchased 63,079 BTC, the acquisition of which cost approximately $4.04 billion. The most recent purchase occurred on September 20, when former CEO Michael Saylor announced that the company had purchased 7,420 BTC for $489 million. This brings the company’s total BTC holdings to 252,200 at a whopping $9.9 billion price tag.
Despite already having a huge Bitcoin holding, accounting for over 1.166% of the total supply, MicroStrategy plans to continue purchasing BTC. The company announced that yes offering $700 million in convertible bondswhich was later changed to $1 billion, the proceeds of which were to be used to purchase more BTC.
As for the company’s plan for a massive BTC vault, Saylor has done this before revealed that the company does not plan to sell in the near future. For now, the plan looks to be to buy as much BTC as possible held as treasury assets whenever possible.
Featured image created with Dall.E, chart from Tradingview.com
