MicroStrategy's innovative Bitcoin strategy has led to a significant boost in its stock performance, with a 213% surge this year. CEO Michael Saylor, in an interview with Fox Business, credited the company's Bitcoin holdings for this impressive growth. The company recently celebrated three years of Bitcoin purchasing by adding another 155 Bitcoins worth $5.3 million to its portfolio.
The firm now holds a total of 158,400 Bitcoins purchased at an average price of $29,586 per coin. In the third quarter alone, MicroStrategy bought 6,067 Bitcoins at an average cost of $27,531 each. As of today, Bitcoin is trading at approximately $35,000 after seeing a 70% increase in value throughout 2023.
Saylor also highlighted the "Magnificent Seven" - Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA) - which have contributed to nearly 13% of the S&P 500's strong performance this year. Among these tech giants, only Tesla holds Bitcoin according to its recent quarterly filings. Despite this, MicroStrategy has outperformed all these companies' returns.
The CEO encouraged other companies to adopt a similar approach to MicroStrategy's Bitcoin strategy as a means of enhancing shareholder value by countering inflation, high-interest rates, and technology-driven deflation. This strategy involves incorporating Bitcoin into balance sheets to escape the costly cycle of acquisitions, stock buybacks, dividends, and debt.
Saylor expressed optimism about Bitcoin's future growth due to the upcoming 2024 halving and potential demand surge from spot ETFs. He showcased Bitcoin's extraordinary performance and capital safeguarding potential with an asset class total returns chart showing a staggering return of 1,120,785% from 2011 to 2023.
The CEO's bullish stance on Bitcoin extends beyond its potential for capital growth. He views it as a high-tech network growing at 40-50% annually and as a crucial tool for capital preservation.
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