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MicroStrategy shot into the limelight when it started buying Bitcoin publicly in 2020. While not the only publicly listed company to do this, the company’s aggressive Bitcoin strategy set it apart from the rest. Four years later, MicroStrategy is now a public company with the largest BTC holdings in the world, recording more than $5 billion in profits to date. However, BTC Holdings’ profit is not the only good thing that comes from the company’s Bitcoin investment strategy.
MicroStrategy’s Stock Price Is Rising
MicroStrategy’s MSTR stock price has capped off an incredibly successful year that saw it make some of the stock market’s biggest hitters. Last year, MSTR’s stock price was sitting at $45. However, as the price of Bitcoin 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 an all-time high of $192 in March 2024, according to data from TradingView. This puts it above the February 2000 peak of $139, making it its highest level in more than two decades. Interestingly, the rise to a high of $192 in March coincided with Bitcoin’s high of $73,750 in the same month.
This suggests that MicroStrategy’s share price is closely related to Bitcoin’s price performance. It is understood that Bitcoin has become a major asset of the company, which means that as the price of Bitcoin increases, so does the valuation of the company, which translates into an increase in the stock price.
It currently sits at $167 at the time of writing, which is down 16% from its all-time high of $192. Even so, it is still 250% higher than its price level of $45 last year. 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 outstanding performance falls behind MicroStrategy, with a 155% year-to-date increase.
Stacking With Bitcoin
Despite four years, MicroStrategy does not allow its Bitcoin purchases, with the largest purchase this year. In 2024 alone, the company bought 63,079 BTC worth about $4.04 billion to acquire. The latest 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 at a whopping $9.9 billion.
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Despite the already large Bitcoin holding, which is more than 1.166% of the total, MicroStrategy plans to continue buying BTC. The company announced that it was offers $700 million in convertible noteswhich was later amended to $1 billion, the proceeds will be used to buy more BTC.
As for the company’s plan for its large BTC, Saylor has previously revealed that the company has no plans to sell it anytime soon. For now, the plan looks to be buying as much BTC as possible to hold as a treasury asset.
The featured image was created with Dall.E, a chart from Tradingview.com