As crypto bulls continue to wait for Bitcoin to reach the $100,000 mark, they may also want to consider starting a company that owns nearly 400,000 tokens.
Since co-founder and executive chairman Michael Saylor tied the software company’s fortunes to cryptocurrency in 2020, MicroStrategy has ruled bitcoin, for better or worse.
Lately, his rate has proved to be extremely profitable. MicroStrategy shares are up 513% year-to-date — and that’s even after the stock hit a post-election high that briefly sent it up nearly 700%.
Either way, it’s well above Bitcoin’s 2024 gain of around 117%. In fact, MicroStrategy’s market capitalization of $87 billion more than doubles 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 going rate).
In the recent interview with Wall Street JournalSaylor explained why there is such a large gap between MicroStrategy stock and Bitcoin.
“MicroStrategy has found a way to outperform Bitcoin,” he said. “Essentially, we’re outperforming Bitcoin in that we’re just scaling Bitcoin.”
The company has been an aggressive buyer of Bitcoin and has not hesitated to raise fresh funds through equity or debt to buy even more. Last month it increased the supply of convertible notes to add to his firepower purchase.
According to magazine.
Of course, there are skeptics. Citron Research said last month that Bitcoin was bullish, but it was MicroStrategy short even as it praised Saylor for his “visionary” strategy.
“Much respect to @saylor, but even he should know $MSTR is overheated,” Citron wrote on X.
But wherever MicroStrategy stock or bitcoin goes, Saylor embraces the volatility and isn’t afraid to jump on the bandwagon. Even before the Bitcoin boom, he once lost $6 billion in one day during the dotcom crash.
And recalling how he came up with his Bitcoin strategy in 2020, Saylor shared magazine that “It was either quick death or slow death, or take a chance, do something out of the box.”
