Four years after adopting a strategy of building a solid reserve of Bitcoin (BTC), MicroStrategy is doing better than ever, with its stock value increasing tenfold over the 2020-2024 period. This strong performance is good news for the company’s co-founder and executive chairman, Michael Saylor, who has an unabashed adoration for the most famous cryptocurrency.
By building a solid reserve of BTC, MicroStrategy is reaping considerable profits
On August 10, 2020, MicroStrategy purchased its first Bitcoin (BTC). The first of a long series. Four years later, MicroStrategy managed to make a profit of $5.38 billion thanks to its strategy of storing a large amount of BTC..
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With nearly 226,500 BTC accumulated, the computer software publisher owns the equivalent of $13.7 billion worth of this cryptocurrency according to the current price of BTCBetween 2020 and 2024, the American company gradually acquired its BTC at an average cost of $37,000.
Timeline of MicroStrategy's BTC purchases since 2020
With Bitcoin currently trading at around $60,000, It is quite easy to understand why the company managed to generate such a large profit.Despite these substantial gains, Michael Saylor's firm has not sold any of its BTC yet.
Indeed, MicroStrategy would seem to continue to want to accumulate BTC, as evidenced by its latest purchase. At the beginning of August, The group bought for $11.4 million of bitcoins, adding 169 BTC to his treasury.
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Michael Saylor's pro-crypto stance wins over Warren Buffett's skepticism
On X, Michael Saylor praised the company's strong financial performance from its BTC reserve. ” In just 4 years, Bitcoin has allowed MicroStrategy to stand out from its competitors ” says the company's executive chairman.
The latter also published a graph highlighting the rise of its shares compared to those of its rivals. In 4 years, MicroStrategy stock is up 995%which places it in 2nd place among the companies listed on the S&P 500 with the largest increases in their shares.
Four years ago today, MicroStrategy adopted #Bitcoin as its primary treasury reserve asset; since then $MSTR has outperformed 499 of 500 stocks in the S&P 500. pic.twitter.com/Db7GVeyc9a
— Michael Saylor⚡️ (@saylor) August 11, 2024
The Microstrategy co-founder also said on the social network that ” Bitcoin Volatility Is a Feature, Not a Bug ” Comments that undoubtedly stung Warren Buffett, the CEO of Berkshire Hathaway.
Indeed, unlike Michael Saylon, Warren Buffett is far from being pro crypto. The American billionaire was already critical of cryptocurrencies in 2019, saying that he was not ready to get hold of them. The businessman even compared Bitcoin to an empty shellassuring that for him it was not an investment.
However, it is clear that MicroStrategy's bet has paid off, and that Berkshire Hathaway has not been able to keep up with “more traditional” investments. Reluctant to explore cryptocurrency investments, his company saw its share price significantly underperform, “only” doubling over the 2020-2024 period.
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In view of the convincing results displayed by MicroStrategy, other entities decided to adopt the same strategy and started building their own BTC reserves. This is the case of Japanese investment company Metaplanet which recently raised $75 million to increase its bitcoin reserve and thus bring its treasury beyond 1,200 BTC.
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Source : Michael Saylor (X)
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Surprised by the rise of crypto-assets in the late 2010s, I started to closely follow this sector that fascinates me to the highest degree. When I am not in football stadiums, rugby or handball halls, I work on writing relevant articles about cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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