As crypto bulls continue to wait for Bitcoin to hit the $100,000 milestone, you may also want to consider a company with nearly 400,000 tokens.
MicroStrategy has been riding Bitcoin, for better or worse, after co-founder and executive chairman Michael Saylor tied the software company’s fortunes to the cryptocurrency in 2020.
Lately, his bet has been very profitable. For the year to date, MicroStrategy shares are up 513%, and even after the stock hit a post-election high, it briefly rose nearly 700%.
Regardless, that’s well above Bitcoin’s 2024 gain of around 117%. In fact, MicroStrategy’s market cap 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 largely purchased at a fraction of the rate).
In the end the interview The Wall Street JournalSaylor explained why there is such a large gap between MicroStrategy stock and Bitcoin.
“MicroStrategy found a way to beat Bitcoin,” he said. “The way we’re beating Bitcoin is basically just making Bitcoin go up.”
The company has been an aggressive buyer of Bitcoin and has not been shy about raising new funds through equity or debt to buy even more. In the last month, that is convertible notes increased supply his purchase to add firepower.
That’s part of a bold plan to raise $42 billion in stock and bond offerings over three years to keep buying Bitcoins. The magazine.
There are certainly skeptics. Last month, Citron Research said it was bullish on Bitcoin but it turned out to be MicroStrategy for short although Saylor praised his “visionary” strategy.
“Much respect to @saylor, but even he must know $MSTR is overheated,” Citron posted. X.
But wherever MicroStrategy stock or Bitcoin go 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 a single day during the dot-com bust.
And while recalling how he came up with the Bitcoin strategy in 2020, Saylor said The magazine “Either death was quick or slow, or take a risk, do something outside the box.”
