MicroStrategy Stock Outperforms Legacy Assets Since Bitcoin Adoption

From August 10, 2020, when MicroStrategy began accumulating Bitcoin (BTC), its stock has soared 242%, outperforming traditional assets at a remarkable rate.

Dan Tapiero, the Founder and CEO of growth equity firm 1RT Partners, recently highlighted the growth trend, noting that MicroStrategy’s Bitcoin bet will go down as the “greatest directional macro trades of all-time.” In his words, the “old school macro investment process leads to giant conviction and giant trade.”

Judging from MicroStrategy’s success, the veteran believes the misconception of Bitcoin’s riskiness encourages people to embrace its volatility

MicroStrategy vs Indices and Tech Stocks

Per the chart shared by Dan, MSTR has outperformed Bitcoin, which has managed 192% growth since it became the company’s favorite reserve asset. The performance of other indices, including the S&P 500, which has grown 25%, and the Nasdaq Composite, with a 17% surge pales, compared to MicroStrategy.

– Advertisement –

Gold, the consensus asset employed as a hedge against inflation, slipped by 1% within the same period as Silver fell 18% and Bonds plummeted by 24%. 

Though 4 of the six profiled large tech stocks in the United States have maintained an uptrend since MicroStrategy adopted its Bitcoin strategy, MSTR’s growth rates dwarf those of these firms. Alphabet Inc’s GOOGL is up 68%, Microsoft’s MSFT has printed a gain of 62%, with Apple’s AAPL recording a 51% jump. 

Meta Platforms Inc (META) has printed a comparatively low gain of 15% but remains in the green when compared to Netflix (NFLX) and Amazon (AMZN), both of which dropped by 15% to date. 

Despite the backlash MicroStrategy has faced in its Bitcoin accumulation journey, it has outperformed stocks within its niche as a business intelligence and software provider.

Oracle (ORCL) takes the second spot in this area with 88% growth, IBM follows with a 19% surge, and Salesforce (CRM) is up 2%. In the enterprise sector, SAP has printed a 16% loss compared to MicroStrategy’s 242% gain.

Unrelenting Bitcoin Accumulation

One underlying factor in MicroStrategy’s Bitcoin accumulation strategy is the firm’s consistency. Though the firm adopted the policy when its founder, Michael Saylor, occupied the CEO position, his successor, Phong Le, has not slowed down the tempo.

In the firm’s Q3 earnings report, it confirmed the acquisition of an additional 155 Bitcoin in October, a figure that places the total bought to 6,607 for the quarter.

At the moment, MicroStrategy now holds a total of 158,400 BTC acquired for $4.69 billion, or $29,586 per bitcoin. These assets are currently worth $5.43 billion at Bitcoin’s current price, leaving the firm with a profit of $740 million.