Michael Saylor, the visionary behind software company MicroStrategy, has hailed Bitcoin (BTC) as the ultimate strategy following the recent purchase of 169 BTC by the company. Saylor took to Twitter to express his thoughts on the remarkable surge in MicroStrategy’s stock price since embracing Bitcoin.
Since making the switch to Bitcoin on August 10, 2020, MicroStrategy’s stock price has skyrocketed by an astonishing 1,206%, outperforming major tech giants like NVIDIA (NVDA). According to data, NVDA saw a surge of 948%, while Tesla (TSLA), Google (GOOG), and Microsoft (MSFT) saw their shares skyrocket by 145%, 131%, and 101% respectively within the same timeframe.
Interestingly, MicroStrategy’s stock has also outperformed Bitcoin itself since August 10, 2022. Data reveals that Bitcoin’s price has only increased by 442% during this period. Similarly, the S&P 500, Nasdaq, and Gold experienced more modest growth rates of 64%, 60%, and 19% respectively.
However, MicroStrategy did suffer a net loss of $102.6 million in the second quarter of 2024. This was primarily due to a $180.1 million impairment charge on its Bitcoin holdings, significantly higher than the $24.1 million charge recorded in the same quarter of the previous year.
It’s worth noting that MicroStrategy acquired 169 BTC worth $11.4 million in July, bringing their total Bitcoin holdings to 226,500 BTC as of July 31, 2024. These tokens were acquired at an average price of $36,821 per token, resulting in a total acquisition value of approximately $8.34 billion. With the current exchange rate at $65,054, MicroStrategy’s 226,500 BTC is now worth $14.73 billion, reflecting a remarkable 76.61% increase from the original purchase price.
Despite already holding a substantial amount of Bitcoin, the software company intends to raise an additional $2 billion to purchase more BTC. MicroStrategy recently filed an application with the U.S. SEC to sell its Class A common stock, with the funds raised to be used for further BTC acquisitions and other general corporate purposes.
It is important to note that this article is for informational purposes only and should not be taken as financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic cannot be held responsible for any financial losses incurred.