MicroStrategy has turned out to be among the best performing stocks in the market. Since August 2020, its stock (MSTR) has risen by a staggering 1,620% due to its high growth Bitcoin purchase strategy. Data from Arkham Intelligence indicate that MicroStrategy performed better than every company in the S&P 500 Index up to this period.
This easily outperforms Bitcoin’s own returns of 426% of the same period. Its focus on Bitcoin has made it different from other tech firms such as Tesla, Apple, and Microsoft that have risen by 243% collectively. The S&P 500, on its part, only appreciated 73%, proving MicroStrategy’s exceptional performance.
The company’s strategy of holding Bitcoin as part of its treasury assets set it apart. This decision to convert a significant portion of its assets into cryptocurrency has paid off. The surge in Bitcoin’s value over the last few years contributed to its rise. Data shows that MicroStrategy benefited from its early move into cryptocurrency.
MicroStrategy initiated the Bitcoin strategy in 2020 headed by Michael Saylor. Bitcoin was purchased to be a key element of the company’s business plans. Despite the market volatility, Saylor remained optimistic about Bitcoin as he claimed, “Only thing better than Bitcoin is more Bitcoin.”
MicroStrategy to Issue $700 Million Convertible Senior NotesThe company’s performance is noteworthy in comparison to the broader market. Saylor recently provided MicroStrategy’s growth figures noting that the firm has not only outperformed Bitcoin but also the Magnificent 7 technology firms, including Tesla, Apple, Amazon. MicroStrategy was able to make more than six times their figure.
The outperformance of MicroStrategy against S&P 500 and technology firms suggests the evolving role of Bitcoin in corporate finance. As this trend indicates, the use of cryptocurrencies can also create new opportunities for revenue generation for companies.
