MicroStrategy has outperformed 97% of S&P 500 stocks since Bitcoin adoption

LAGOS (CoinChapter.com) — Despite the recent downtrend that swept through the crypto market, MicroStrategy stock (MSTR) still performs remarkably, according to new reports.

In detail, MicroStrategy stock (MSTR), since the firm adopted the Bitcoin strategy in August 2020, has outperformed most asset classes. For example, according to stock performance shared by Eric Balchunas, a senior exchange-traded fund analyst, MSTR has outperformed 97% of S&P 500 stocks since 2020.

The data shared by Balchunas indicated that the company gain had trounced small and large companies, including Bitcoin itself. Notably, the data revealed that MicroStrategy’s MSTR registered more than 150% returns in the last two years.

Moreover, compared to the Russell 2000 Index, which comprises the smallest 2,000 companies, MicroStrategy recorded returns of about 25%. On the other hand, S&P 500 is trailing MSTR at about 27%. Furthermore, compared to Bitcoin, MicroStrategy shares gained almost 99%.

It is worth noting that MSTR registered this gain despite the firm’s revenues dwindling due to the crypto market meltdown. Additionally, former MicroStrategy CEO Michael Saylor via his Twitter account, initially highlighted the brilliant performance of the asset.

Crypto Collapse Impact On MicroStrategy

Meanwhile, it is worth noting that the recent cryptocurrency market collapse also hurt Microstrategy stock. Notably, in the second quarter of 2022, MSTR recorded quarterly revenue of $122.1 million against expectations of $126 million.

The company also recorded almost a billion loss due to the market downtrend that started in May. Notably, about $918 million of the loss was attributed to its Bitcoin holdings. At the time of publication, MicroStrategy’s Bitcoin holdings are valued at almost $3 billion, against the acquisition value of about $4 billion.

Furthermore, MicroStrategy’s revenue fell 2.6% year-over-year to $122.07 million. As a result of the massive loss, Saylor announced his resignation as the firm’s CEO. Notably, Saylor will assume the role of an executive chairman, focusing more on the company’s Bitcoin acquisition strategy.     

“I believe that splitting the roles of Chairman and CEO will enable us to better pursue our two corporate strategies of acquiring and holding bitcoin and growing our enterprise analytics software business.”

Saylor said.