Microstrategy Outperforms Every Asset Class and Big Tech Stock Since Adopting Bitcoin Strategy, Says CEO
Microstrategy (MSTR) has “outperformed every asset class and big tech stock” since the company adopted a bitcoin strategy and started accumulating the cryptocurrency in its corporate treasury, says CEO Michael Saylor. Th...
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Microstrategy (MSTR) has “outperformed every asset class and big tech stock” since the company adopted a bitcoin strategy and started accumulating the cryptocurrency in its corporate treasury, says CEO Michael Saylor. The pro-bitcoin executive will be stepping down as the CEO of Microstrategy and take the role of the company’s executive chairman to focus on bitcoin.
Microstrategy’s Performance Since Adopting Bitcoin Strategy
The Nasdaq-listed software company Microstrategy Inc. (Nasdaq: MSTR) released its Q2 financial results Tuesday. CEO Michael Saylor tweeted Wednesday:
Since adopting a bitcoin strategy, MSTR has outperformed every asset class & big tech stock.
He added that the price of bitcoin increased 94% during that time period while the S&P500 rose 23% and Nasdaq climbed 13%. In contrast, gold, bonds, and silver are down 13%, 14%, and 29%, respectively. Microstrategy adopted a bitcoin strategy in the third quarter of 2020.
He explained in a different tweet:
Since Microstrategy adopted a bitcoin strategy, its enterprise value is up +730% (+$5 billion) and MSTR is up +123%.
When comparing the performance of Microstrategy’s stock to big tech stocks since the adoption of a bitcoin strategy, Saylor noted that MSTR outperformed Alphabet/Google (GOOG), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook-owner Meta (META), and Netflix (NFLX).
Microstrategy has two corporate strategies: business analytics and bitcoin. The bitcoin strategy is to “acquire and hold bitcoin long-term; purchase bitcoin through use of excess cash flows, and debt and equity transactions,” according to the company’s Q2 financial results presentation.
The software company currently owns about 129,699 BTC, acquired at an average purchase price of $30,664 per bitcoin, net of fees and expenses, for an aggregate cost basis of $4 billion, the company said. Microstrategy reported bitcoin impairment charges of $917.8 million in the second quarter, which are non-cash charges due to BTC price volatility.
Microstrategy also announced Tuesday that Saylor will step down as the CEO of the company and take the role of the executive chairman, effective Aug. 8. Phong Le, the company’s current chief financial officer, will become the new CEO.
Saylor, who has served as the CEO of the company since 1989, will remain the chairman of the board of directors and an executive officer of the company. He detailed:
As executive chairman, I will be able to focus more on our bitcoin acquisition strategy and related bitcoin advocacy initiatives.
“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,” the outgoing CEO commented.
“In my next job, I intend to focus more on bitcoin,” he tweeted Wednesday.
What do you think about Microstrategy’s performance since adopting a bitcoin strategy? Let us know in the comments section below.
Why this matters
This bitcoin story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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