MicroStrategy shares surged over 8% last Friday following founder Michael Saylor’s announcement that the company had acquired an additional $1.1 billion worth of Bitcoin. The stock, which has seen significant growth this year, climbed 24% for the week and is now up an impressive 124% in 2024.
Saylor, taking to social media platform X, revealed that MicroStrategy’s average Bitcoin purchase price over the past four years sits at $38,585 per coin, while Bitcoin is currently trading close to $60,000. With a holding of 244,800 bitcoins valued at $14.6 billion, MicroStrategy remains the largest corporate holder of the cryptocurrency, cementing its role as a key player in the digital asset space.
Founded in 1989, MicroStrategy originally built its reputation in enterprise software and cloud-based services. However, with the company’s fortunes now largely tied to its Bitcoin holdings, it has evolved into a de facto proxy for the world’s largest cryptocurrency. According to Bitcoin Treasuries, no other corporate entity holds as much Bitcoin as MicroStrategy.
Saylor further emphasized the company’s unique position, stating that MicroStrategy’s “BTC yield” – a new metric the company has introduced – shows a 17% increase in value for shareholders, driven by its strategy of issuing stock to fund Bitcoin purchases. He explained that MicroStrategy aims to offer investors varying degrees of exposure to Bitcoin, describing the company as a bridge between institutional investors and the cryptocurrency market.
Despite last week's rally, MicroStrategy’s stock remains 26% below its March high, closing Friday at $141.47. However, the stock continues to outperform Bitcoin itself, which is up 35% for the year. According to Saylor, owning MicroStrategy stock offers a way to invest in Bitcoin with added benefits like leverage and downside protection. He noted that many investors prefer this hybrid model, providing exposure to Bitcoin’s performance with the stability of traditional equity markets.
This bold approach has positioned MicroStrategy as a key player in the evolving intersection between institutional finance and cryptocurrency, with Saylor continuing to lead the charge in bringing Bitcoin to mainstream investors.
