As crypto bulls continue to wait for Bitcoin to reach the $100,000 milestone, they may want to consider companies that own around 400,000 tokens.
MicroStrategy has been on a Bitcoin ride, for better or for worse, since co-founder and executive chairman Michael Saylor poured the software company's fortune into the cryptocurrency in 2020.
Recently, his bet turned out to be hugely profitable. Year-to-date, MicroStrategy stock is up 513%. This is even after the stock price briefly climbed nearly 700% following the election highs.
In any case, this is significantly higher than Bitcoin's 2024 growth rate of approximately 117%. In fact, MicroStrategy's market cap of $87 billion is more than double the value of the 386,700 Bitcoins it owns, making it worth $37.6 billion at current prices (most of which are traded at a fraction of the current rate). (purchased at ).
Recently Interview with wall street journalSaylor explained why there is such a big difference between MicroStrategy stock and Bitcoin.
“MicroStrategy has found a way to outperform Bitcoin,” he said. “The way we outperform Bitcoin is essentially just leveraging Bitcoin.”
The company has been an active buyer of Bitcoin and has not hesitated to raise new capital through equity or debt to buy more Bitcoin. Last month, the company increased its convertible bond issuance to increase purchasing power.
According to the paper, this is part of a bold plan to raise $42 billion in stock and bond issues over three years to continue buying Bitcoin. journal.
There are certainly skeptics. Last month, Citron Research said it was bullish on Bitcoin, which it actually is. MicroStrategy shorts Even if it praises Thaler's “visionary” strategy.
“With all due respect to @saylor, even he knows $MSTR is hot,” Citron posted on X.
But no matter where MicroStrategy stock or Bitcoin goes in the future, Saylor is embracing the volatility and isn't afraid to stick his neck out. Even before the Bitcoin boom, the company once lost $6 billion in a single day during the dot-com bust.
Saylor then recalled how he came up with his Bitcoin strategy in 2020. journal “It's either a fast death or a slow death. Or you take a risk and do something out of the box.”
