MicroStrategy became the first publicly traded company to adopt Bitcoin as a primary reserve asset in August 2020. Four years have now passed and that strategy appears to have been a resounding success. This year alone, MicroStrategy’s stock rose 650%.
MicroStrategy is worth $100 billion
At the time of writing, MicroStrategy’s total market value has rocketed past $100 billion.
This brings it close to chip manufacturer Intel, which has a market cap of almost $102 billion. After Donald Trump’s election victory, Bitcoin is going through the roof, and MicroStrategy is benefiting even more from this.
MicroStrategy stock trades almost like a kind of leverage on Bitcoin. The Bitcoin price rose by 124% in 2024, while MicroStrategy increased fivefold.
The downside, of course, is that Bitcoin price declines also have a greater impact on MicroStrategy’s share price.
MicroStrategy is the boss at the stock exchange
Yesterday was a special day for MicroStrategy. On November 20, Michael Saylor’s company was the stock market’s most traded stock, beating big names like Tesla and Nvidia.
When presenting its quarterly results for Q3 2024, MicroStrategy shared its plan to purchase $42 billion worth of Bitcoin over the next three years.
Since then, it has managed to purchase approximately $6 billion worth of Bitcoin. This means that another 36 billion dollars worth of BTC must follow. However, if they continue at this pace, that $42 billion figure could well be exceeded.
Yesterday, Michael Saylor reported that there was so much demand for MicroStrategy’s new capital round that they wanted to raise $2.6 billion in loans instead of $1.75 billion.
In that respect, MicroStrategy is once again making a major Bitcoin purchase. Is there anything that can stop this train, or will MicroStrategy single-handedly buy Bitcoin to the moon?
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Source: https://newsbit.nl/microstrategy-koers-schiet-650-omhoog-in-2024/
