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MicroStrategy’s (MSTR) stock has surged by an impressive 288 percent in 2023 surpassing Apple’s five-year performance, and even outperforming Bitcoin’s spot price in 2023.
MicroStrategy Inc. (MSTR) reports over $2 billion in profits from its Bitcoin holdings as the cryptocurrency exceeds $42,000.
While Bitcoin (BTC) has recorded staggering gains this year, MicroStrategy – the largest corporate holder of Bitcoin – has also registered massive gains. The Microstrategy (NASDAQ: MSTR) stock price is up by a staggering 288 percent since the beginning of 2023, currently trading at $563.
Interestingly, it turns out that MicroStrategy has also outperformed the largest tech company Apple Inc. on a five-year chart. In the latest market revelation from YCharts, MicroStrategy has taken the lead with an astounding 332.6 percent surge in its shares, surpassing even the impressive 307.9 percent rise witnessed by tech giant Apple.
MicroStrategy’s strategic move to invest in Bitcoin stands out as a pivotal factor contributing to its remarkable share price escalation. The company first captured headlines in 2020 when it made the audacious decision to convert a substantial portion of its treasury holdings into the world’s leading cryptocurrency.
In contrast, Apple’s success over the past five years is rooted in a multifaceted approach. The tech behemoth has sustained growth through continuous innovation in product development, thriving services like the App Store and Apple Music, unwavering brand loyalty, and seamless ecosystem integration.
Despite Tim Cook’s interest in cryptocurrencies, Apple has opted for a cautious approach, steering clear of direct corporate investments in the volatile crypto market. While MicroStrategy’s bold venture into Bitcoin has fueled its impressive stock surge, Apple continues to leverage its diverse business portfolio and global standing to maintain a robust financial position in the market. The interesting fact is that the MSTR stock has not only outperformed AAPL stock but even the spot Bitcoin price.
MicroStrategy’s Bitcoin Profits Cross $2 Billion
In a groundbreaking financial development, MicroStrategy Inc. (MSTR) has reported a staggering profit exceeding $2 billion from its Bitcoin holdings, propelled by the recent surge in the cryptocurrency’s price, which surpassed $42,000.
As of November 30, MicroStrategy boasted ownership of an impressive 174,530 Bitcoins, acquired at an average cost of $30,252 per Bitcoin, totaling approximately $5.28 billion. However, with Bitcoin’s recent surge to $42,000, the overall value of MicroStrategy’s holdings catapulted to around $7.3 billion, resulting in a remarkable profit of over $2 billion. Despite a slight pullback to $41,700, MicroStrategy’s profit remains substantial, showcasing the company’s strategic investment in the volatile cryptocurrency market.
This surge in Bitcoin’s value marks a significant recovery since April 2022, preceding the collapse of the Terra ecosystem. During the 2022 bear market, Bitcoin’s value plummeted below $16,000, posing a considerable threat to MicroStrategy’s initial investment. Undeterred, MicroStrategy’s CEO Michael Saylor persisted in growing the company’s Bitcoin portfolio, employing a strategic mix of debt and equity to fund the ongoing purchases.
Along with MicroStrategy, other public-listed crypto firms have also witnessed strong gains in their stock prices. E.g. Coinbase (COIN) stock is up by 320 percent year-to-date while stocks of Bitcoin mining companies have also gained 200-300 percent.
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