Microstrategy has achieved a historic milestone, outperforming Warren Buffett’s Berkshire Hathaway by the largest margin seen since the dot-com bubble.
The software company, which began accumulating Bitcoin in August 2020, has seen its stock skyrocket by 2,295.74%. In comparison, Berkshire Hathaway’s Class A stock has risen by 36.02% in the same period. This exceptional growth highlights the impact of Microstrategy’s decision to adopt Bitcoin as a strategic reserve asset, positioning the company ahead of Berkshire Hathaway and Bitcoin itself regarding returns.
Microstrategy’s Bitcoin bet pays off
Microstrategy’s massive rally can be traced back to its pivotal decision to invest in Bitcoin starting in August 2020. The company’s Bitcoin holdings have grown steadily since its initial purchase of 21,454 BTC for $250 million, making it the largest corporate holder of Bitcoin. As of today, the firm owns 279,420 BTC, valued at $25.3 billion at Bitcoin’s current price of $90,540.
Source: Tradingview
Unlike Bitcoin’s 673.83% rise over the same period, Microstrategy’s stock has seen even greater success, surging by 2,295.74%. This far exceeds the returns of traditional Berkshire Hathaway portfolio favorites like Apple (up 86%), Bank of America (up 76.15%), and American Express (up 171%), as well as the broader S&P 500 index, which climbed 71.31%.
Bitcoin adoption spurs interest across companies
Microstrategy’s embrace of Bitcoin has paved the way for other companies to consider using the cryptocurrency as a hedge against inflation and a method to increase shareholder value. Solidion Technology, a US-based battery materials firm, recently adopted Bitcoin as a reserve asset. The company made its first Bitcoin purchase and plans to allocate 60% of its surplus cash reserves to acquire additional holdings, redirecting earnings from other investments into Bitcoin.
Tokyo-listed investment firm Metaplanet also adopted Bitcoin as a reserve asset earlier this year, signaling growing interest among corporations to diversify their strategies using cryptocurrency.
Michael Saylor’s bold Bitcoin predictions
Microstrategy’s executive chairman, Michael Saylor, has been a vocal advocate for Bitcoin and predicts that the cryptocurrency’s value could soar to $13 million per coin within the next two decades. The company’s average cost per Bitcoin is $42,692, reflecting its long-term commitment to the asset.
Saylor’s strategic vision has positioned Microstrategy as a leader in corporate Bitcoin adoption, and the company’s exponential growth continues to validate its approach. As the largest corporate Bitcoin holder, Microstrategy’s example could influence more firms to explore Bitcoin as a viable reserve strategy.
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