2024-03-02 20:03:13
Not only bitcoin BTC Price, but also the shares of the companies that own it have performed well in the past period. MicroStrategy (MSTR), a business intelligence company founded by Michael Saylor, has achieved serious results. They are the ones who have the most bitcoins among the actors in the corporate sphere.
Thanks to its massive exposure to bitcoin, MSTR has underpowered even the largest US stock indexes.
MicroStrategy does not spare stock indexes
The S&P 500, which includes the 500 largest US listed companies, is up more than 8% since the beginning of the year. By comparison, the average annual growth of the index since its inception has been around 10%. All this coincides with the tendency that the American financial markets show signs of recovery.
The Dow Jones Industrial Average is up 3.6% since the beginning of January based on Friday’s closing price. The Nasdaq Composite, which tracks the biggest tech companies, was only able to grow 1% over the same period.
However, this is nothing compared to what MicroStrategy has produced. Its share price has increased by more than 50% since the start of 2024, and by the end of the week it had broken the $1,000 level. With this performance, like bitcoin, it approached its previous record price, which it reached in February 2021 at $1,300.
The sharp difference in the performance of MicroStrategy and many other US stocks is undeniably due to the increase in the price of bitcoin. The business intelligence giant undertook its surprising and divisive financial strategy back in August 2020, when it added the largest cryptocurrency to its balance sheet.
They started with purchases of a few million dollars, and since then they have been constantly in the news with their significant bitcoin purchases. This trend was not even affected by bitcoin’s negative exchange rate performance. Saylor — who has since stepped down as CEO to focus more on bitcoin — defended the asset even as its price dropped from $69,000 to $20,000 in a single year.
The company currently holds 193,000 BTC as of its most recent reports. The company has already spent more than 6 billion dollars on the digital device, but thanks to the recent increase, they were also able to achieve this amount, or 6 billion dollars, in unrealized profit.
By the way, with the latest increase, MicroStrategy has reached the threshold required to be included in the S&P 500 index. If they manage to close every quarter profitably this year, then is not excludedthat from 2025 the bitcoin exchange rate will already have a greater direct influence on the S&P 500.
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