Key points:
- Bitcoin has surged 237% in two years, showcasing its value as a strategic asset for companies.
- MicroStrategy’s stock (MSTR) skyrocketed 669% during the same period, outperforming Bitcoin significantly.
- MicroStrategy’s current valuation accurately reflects its Bitcoin holdings, indicating a strategic shift in corporate investment approaches.
CryptoQuant CEO Ki Young Ju commented that Michael Saylor played a vital role in proving that Bitcoin is the ultimate asset for listed companies, showing how a company’s Bitcoin-focused strategy at MicroStrategy can outshine other investment means in the longer term.
Bitcoin’s Impressive Growth Outpaces Traditional Assets
Bitcoin is the ultimate asset for businesses, rising 237% over the past two years. But shares of MicroStrategy MSTR, which bet big on Bitcoin thanks to the leadership of then-CEO Saylor, have surged even higher. The stock has shot up 669% during the same period. Yet even though Bitcoin and MicroStrategy both fell about the same per cent during the recent bear market, MSTR has bounced back quite a bit stronger-three times as fast.
Read more: Bitcoin ETF Inflows Reach $136M, Marking Fourth Straight Day
Valuation Adjustments Reflecting Bitcoin’s Strategic Importance
Ki Young Ju explained that the ratio of MicroStrategy’s Bitcoin holdings to its market value indicates that valuation now reflects the firm’s Bitcoin assets better and is in sharp contrast to what has been witnessed in 2021, given the different market dynamics. This adjustment is, therefore, a better reflection of valuation based on the firm’s rich Bitcoin is the ultimate asset reserves and underlines the strategic importance of holding Bitcoin as part of a corporate investment strategy.
“The best strategy is the Bitcoin strategy,” Ju once again drove the point home that Bitcoin is the ultimate asset and can be that power tool of a reserve asset to unlock the highest value for companies that are on the lookout for long-term growth and stability. This only cements comments from the CryptoQuant CEO that companies are increasingly adopting Bitcoin on their balance sheets as a hedge against inflation and economic instability.
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