Software firm MicroStrategy’s stock is experiencing significant growth as the company continues its aggressive acquisition of Bitcoin.
MicroStrategy, listed on the Nasdaq under the ticker symbol MSTR, saw its shares surge to as high as $1,610 per share on Monday, marking a nearly 14% increase over the previous 24 hours. Although the price has since moderated to $1,484 at the time of writing, reflecting a more modest one-day gain of 4%, the stock remains up by a remarkable 106% for the month.
Since initiating its Bitcoin strategy in 2020 by adding the cryptocurrency to its balance sheet, MicroStrategy has witnessed a staggering 912% surge in its stock price. The highest recorded price was in 2000, when shares were trading at $3,130.
The latest spike in MicroStrategy’s stock price coincided with the company’s announcement of additional Bitcoin purchases, solidifying its position as the holder of the largest Bitcoin reserves among publicly traded companies. At current market prices, MicroStrategy’s Bitcoin holdings surpass $14.8 billion.
With its Bitcoin holdings surpassing 200,000, MicroStrategy has reclaimed its lead over BlackRock’s Bitcoin ETF, which holds 195,985 Bitcoin.
Meanwhile, Bitcoin itself reached another milestone, with its price hitting an all-time high of $72,201 per coin, according to data from CoinGecko.
MicroStrategy’s co-founder and chairman, Michael Saylor, expressed his bullish outlook on Bitcoin during an interview with CNBC, stating that Bitcoin’s market capitalization will eventually surpass that of gold. He emphasized that investing in MicroStrategy’s stock provides exposure to Bitcoin, describing the company as a “Bitcoin development company.”
Saylor highlighted Bitcoin’s digital nature as a key factor driving its superiority as an investment compared to traditional assets like gold, equities, bonds, and real estate. He noted Bitcoin’s continuous trading availability, with the cryptocurrency being traded 168 hours a week, unlike most other assets.
MicroStrategy initially entered the Bitcoin market in August 2020, with Saylor citing the potential for shareholders to achieve better returns by holding digital coins instead of cash. Since then, the company has consistently increased its Bitcoin holdings, a strategy that has been followed by other notable companies, including electric car manufacturer Tesla.
