TechFlow reported on August 11 that MicroStrategy’s stock value has risen by about 1,000% since it first bought Bitcoin on August 10, 2020, far exceeding the returns of Bitcoin itself and the S&P 500. Four years later, this bold move has become a decisive strategy for the company, with a return rate that even exceeds Warren Buffett’s Berkshire Hathaway.
As of August 10, 2024, MicroStrategy holds 226,500 bitcoins, worth approximately $13.771 billion, with an average purchase cost of approximately $37,000. As the price of Bitcoin rises to approximately $60,500, MicroStrategy's unrealized profits are approximately $5.39 billion. Despite the considerable gains, MicroStrategy has chosen to continue holding and increasing its holdings of Bitcoin, with the most recent purchase occurring on August 1.
In contrast, Berkshire Hathaway's Class A shares have only risen 104.75% since MicroStrategy first bought Bitcoin. Buffett once called Bitcoin "rat poison squared," and his partner Charlie Munger even predicted that the price of Bitcoin would return to zero. However, both MicroStrategy and Bitcoin have outperformed Berkshire Hathaway's major stock holdings, such as Apple, American Express, and Bank of America.