YEREVAN (CoinChapter.com) — MicroStrategy (NASDAQ: MSTR) stock price has soared above $520, thanks to its Bitcoin (BTC) holdings. This is the highest the shares of the Michael Saylor-led firm have been in two years.
MSTR stock last stayed above the $500 mark in December 2021. Year to date, MicroStrategy has delivered around 260% in profits to investors, according to Google Finance charts.
Bitcoin Behind MSTR Performance in 2023
MicroStrategy is one of the most bullish companies when it comes to crypto. With a heavy bag of 158,400 Bitcoins, it currently leads the list of publicly traded companies that have invested in BTC, ahead of Galaxy Digital Holdings and Tesla.
MicroStrategy made its first Bitcoin purchase in August 2020, when its stock price traded under the $150 mark. Within months, the MicroStrategy stock price soared. By February 2021, the MSTR price had crossed $1000. The firm had not charted such figures in over 20 years.
While the price has since slid, the recent Bitcoin bull run has helped MicroStrategy’s stock price to remain around 150% higher since its first Bitcoin purchase.
According to Bitcoin Treasuries, MicroStrategy boasts a market cap of over $7.55 billion while writing.
Corporate Must Have BTC Exposure
MicroStrategy’s co-founder, Michael Saylor, has credited Bitcoin for the massive surge in the firm’s share price. Saylor is credited for devising the firm’s strategy to exploit the BTC opportunity.
Earlier this month, Saylor said that his decision to hoard Bitcoin allowed his firm to compete against large, profitable corporations.
“There’s seven companies that generate all the shareholder returns. There’s 7,000 companies that can’t keep up. What we did in August of 2020 was recognize that there’s no way we’re going to outgrow Google and Microsoft and Apple Computer as a mid-sized software company,”
he said, according to Business Insider.
Moreover, according to him, the government’s constant inflation and interest rate hikes make it difficult for companies to survive.
Bitcoin provided the perfect opportunity to have leverage against otherwise challenging times.
“We realized bitcoin is like a high-tech dominant digital network growing at 40% or 50% a year, and so we bought it. It’s kept growing at 40% to 50% a year, and now we’re using our balance sheet to grow the company,”
he said.
Despite the skepticism surrounding the crypto asset class, the recent surge in the MicroStrategy stock price proves that Bitcoin can be a good hedge against inflation.
