Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
American business intelligence and software firm MicroStrategy has continued to enjoy the dividends of its Bitcoin association. With the uptick in the past few weeks, MicroStrategy shares — MSTR — have jumped to a six-month high of $186.09.
Bitcoin paid off for MicroStrategy
Despite its establishment date of November 1989, MicroStrategy started gaining intense attention in August 2020, when it adopted Bitcoin as its Treasury Reserve Asset.
Gamza KhanzadaevThis move was unusual for a Wall Street business at a time when the global economy was close to collapsing. Under Michael Saylor’s leadership, MicroStrategy started buying Bitcoin and remained consistent.
Before its Bitcoin adoption in 2020, the company’s share price traded well below the $20 mark. However, with the firm’s resolute embrace of crypto, investors have continued liking MSTR, injecting liquidity along the way.
Within the space of four years, MicroStrategy stock has outperformed the majority of its Wall Street counterparts. Shares have surged by more than 446% in the trailing 12-month period. Since August 2020, MSTR has skyrocketed by over 1,166.7%.
While its Bitcoin adoption has helped it surpass this historic milestone, MicroStrategy stock is still below its March 10, 2000, all-time high (ATH) of $313.
Profitability differs
Despite the share price action, MicroStrategy has a rare profitability track record, drawing on its Bitcoin holdings.
Godfrey BenjaminWith its last purchase, the company sold 7,420 BTC for approximately $458.2 million at about $61,750 per Bitcoin. For that purchase on Sept. 20, MicroStrategy said it has achieved a BTC yield of 5.1% QTD and 17.8% YTD.
The company now HODLs 252,220 BTC, acquired for approximately $9.9 billion at about $39,266 per Bitcoin. With Bitcoin’s current price coming in at $62,430.35, this total holding is worth $15.7 billion. With a $5.8 billion gross profit raked in, investors might be more confident about betting on MSTR because of its promising future outlook.
Gamza Khanzadaev
Yuri Molchan
Dan Burgin
Alex Dovbnya
Vladislav Sopov