MicroStrategy became one of the most profitable organizations in the S&P 500
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Johny Smith
2024/11/02
3 mins read
MicroStrategy remains one of the largest public holders of the flagship crypto asset. The company has been pursuing an aggressive investment strategy in Bitcoin for a long time.
This has allowed MSTR to become the top performing organization in the S&P 500. Since MicroStrategy adopted Bitcoin as a strategic asset, its stock has risen 1,620%. In this aspect, MSTR confidently outperformed many technology companies, including Nvidia and Arista Networks.
MicroStrategy’s meteoric rise can be attributed to Michael Saylor’s bold decision in 2020. At that time, the organization converted a significant portion of its financial reserves into bitcoin. According to Bitcoin Treasuries, the organization currently owns more than 252 thousand BTC coins. This is estimated to represent approximately 1.2% of the flagship crypto asset’s total market supply.
The organization also began actively issuing native bonds to the market. This allowed MicroStrategy to steadily increase its Bitcoin reserves. The company’s net asset value (NAV) premium over its Bitcoin holdings reached a three-year high of 270%, according to MSTR-Tracker metrics.
This indicator reflects the difference between the market value of the organization itself and its bitcoin reserves. Given MicroStrategy’s impressive performance, this indicates that investors are choosing to buy the company’s shares rather than the flagship crypto asset directly. Currently, MSTR securities are located at $1,931, having added about 60% over the past month.
Despite some volatility in market conditions, MicroStrategy shares continue to demonstrate stable growth. However, a number of experts note that if Bitcoin faces a sudden deep drawdown, this will negatively affect MSTR securities.
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