While crypto bulls continue to wait for Bitcoin to reach the $100,000 mark, they may also want to consider a company that owns nearly 400,000 tokens.
MicroStrategy is riding Bitcoin, for better or for worse, after co-founder and CEO Michael Saylor tied the software company’s fortunes to the cryptocurrency in 2020.
Lately, his bet has proved extravagantly lucrative. Year-to-date, MicroStrategy shares are up 513%—even after the stock hit a post-election high that briefly sent it up nearly 700%.
Either way, 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 386,700 Bitcoin holdings, which are worth $37.6 billion at current prices (and mostly purchased at a fraction of the going rate).
In a recent interview with The Wall Street JournalSaylor explained why there is such a wide gap between MicroStrategy stock and Bitcoin.
“MicroStrategy has found a way to outperform Bitcoin,” he said. “The way we’re outperforming Bitcoin, essentially, is we’re just scaling Bitcoin.”
The company has been an aggressive buyer of Bitcoin and has not been shy about raising fresh funds through equity or debt to buy even more. Last month, that increased the offer of convertible notes add to your purchasing firepower.
According to Magazine.
There are certainly skeptics. Last month, Citron Research said it was bullish on Bitcoin, but it was MicroStrategy short circuit even as it complimented Saylor on his “visionary” strategy.
“Much respect to @saylor, but even he must know $MSTR is overheated,” Citron posted on X.
But wherever MicroStrategy stocks or Bitcoins go, Saylor embraces volatility and isn’t afraid to stick his neck out. Even before the bitcoin boom, he once lost $6 billion in one day during the dot-com crash.
And as he recalls how he came up with his Bitcoin strategy in 2020, Saylor is in favor Magazine that “it’s either quick death or slow death, or take a chance, do something outside the box.”
