MicroStrategy’s Bitcoin Bet Pays Off Big: Stock Soars 317% in a Year

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MicroStrategy shot to fame when it began publicly buying Bitcoin back in 2020. While not the only publicly traded company to do so, its aggressive Bitcoin strategy set it apart. Four years later, MicroStrategy is now the public company with the largest BTC holdings in the world, boasting over $5 billion in profit to date.

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But the profit on its BTC holdings isn’t the only positive outcome of the company’s Bitcoin investment strategy. MicroStrategy’s stock price has skyrocketed, outperforming major players in the stock market.

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MicroStrategy’s Stock Price Takes Flight

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MicroStrategy’s MSTR stock price has had an incredible year, easily surpassing the gains of major market players. A year ago, the MSTR stock price was languishing at $45. However, as the Bitcoin price recovered and the company’s BTC portfolio grew, so did its stock price.

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In just one year, the price surged over 317% to reach a new all-time high of $192 back in March 2024, according to data from TradingView. This surpassed its previous February 2000 peak of $139, marking its highest level in over two decades.

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Interestingly, this surge to the $192 all-time high in March coincided with Bitcoin’s all-time high of $73,750 that same month. This suggests a strong correlation between MicroStrategy’s stock price and Bitcoin’s price performance.

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It’s no surprise given that Bitcoin has become the company’s largest asset. As the Bitcoin price rises, so does the company’s valuation, translating to an increase in its stock price.

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Currently sitting at $167 at the time of writing, it’s 16% down from its $192 all-time high. However, it’s still 250% higher than its $45 price level a year ago. This puts it ahead of companies like Apple, which is up only 24% year-to-date, and Amazon, with a 34% year-to-date increase. Even NVIDIA’s remarkable performance falls behind MicroStrategy, with a 155% year-to-date increase.

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Doubling Down on Bitcoin

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Despite being in this for four years, MicroStrategy isn’t slowing down its Bitcoin purchases. This year alone, the company has bought 63,079 BTC, costing around $4.04 billion.

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The most recent purchase was on September 20, when former CEO Michael Saylor announced the company had bought 7,420 BTC for $489 million. This brings the company’s total BTC holdings to 252,200, at a whopping cost price of $9.9 billion.

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Despite already holding a massive amount of Bitcoin, accounting for over 1.166% of the total supply, MicroStrategy plans to keep buying. The company announced a $700 million convertible note offering, later amended to $1 billion, with the proceeds intended for purchasing more BTC.

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As for the company’s plan for its massive BTC stash, Saylor has previously stated that there are no immediate plans to sell. For now, the focus is on acquiring as much BTC as possible to hold as a treasury asset.