MicroStrategy's Bitcoin Investments Push Stocks to Two-Year High
Shares of MicroStrategy, the institutional business firm known for its bullish stance on Bitcoin, have reached a two-year high.
The company's shares closed Friday above $500, a level not seen since December 2021, according to data from Yahoo Finance.
The company's strategy of holding large amounts of Bitcoin has proven to be a profitable move. Despite starting the year with a 3-month loss, MicroStrategy's stock price doubled within a month.
Michael Saylor, founder and chairman of MicroStrategy, began accumulating Bitcoin to hedge against inflation in August 2020.
In April, MicroStrategy's Bitcoin holdings gained value as the price of Bitcoin surpassed $30,000. The company purchased another 1,045 Bitcoins, bringing its total assets to 140,000 Bitcoins.
In its second-quarter earnings report, MicroStrategy turned a profit despite a $24 million Bitcoin impairment charge.
As the largest publicly traded company with Bitcoin on its balance sheet, it continued its efforts to purchase BTC, amassing 152,800 Bitcoins worth approximately $4.4 billion.
Interestingly, shares of companies investing in Bitcoin have outperformed Bitcoin, which is already up 87% in value.
The company continued its Bitcoin purchasing strategy and purchased an additional 6,067 Bitcoins for an additional $167 million.
MicroStrategy has become a significant asset holder, controlling approximately 0.75% of Bitcoin's total circulating supply.
It was also stated that MicroStrategy's shares will benefit from the upcoming Bitcoin halving event.
There is a nearly 90% correlation between MicroStrategy's stock price and the price of Bitcoin. This leads financial analysts like Berenberg to predict that MicroStrategy's shares will rise along with Bitcoin.
Shares of MicroStrategy, the institutional business firm known for its bullish stance on Bitcoin, have reached a two-year high.
The company's shares closed Friday above $500, a level not seen since December 2021, according to data from Yahoo Finance.
The company's strategy of holding large amounts of Bitcoin has proven to be a profitable move. Despite starting the year with a 3-month loss, MicroStrategy's stock price doubled within a month.
Michael Saylor, founder and chairman of MicroStrategy, began accumulating Bitcoin to hedge against inflation in August 2020.
In April, MicroStrategy's Bitcoin holdings gained value as the price of Bitcoin surpassed $30,000. The company purchased another 1,045 Bitcoins, bringing its total assets to 140,000 Bitcoins.
In its second-quarter earnings report, MicroStrategy turned a profit despite a $24 million Bitcoin impairment charge.
As the largest publicly traded company with Bitcoin on its balance sheet, it continued its efforts to purchase BTC, amassing 152,800 Bitcoins worth approximately $4.4 billion.
Interestingly, shares of companies investing in Bitcoin have outperformed Bitcoin, which is already up 87% in value.
The company continued its Bitcoin purchasing strategy and purchased an additional 6,067 Bitcoins for an additional $167 million.
MicroStrategy has become a significant asset holder, controlling approximately 0.75% of Bitcoin's total circulating supply.
It was also stated that MicroStrategy's shares will benefit from the upcoming Bitcoin halving event.
There is a nearly 90% correlation between MicroStrategy's stock price and the price of Bitcoin. This leads financial analysts like Berenberg to predict that MicroStrategy's shares will rise along with Bitcoin.