Disrupting traditional investment thinking, the Bitcoin strategy brings astonishing returns.
As a business intelligence software company, MicroStrategy has boldly adopted Bitcoin as a strategic reserve asset since August 2020, resulting in a staggering increase of 2,295.74% in MSTR's stock price (the price before publication was 384.79). This increase not only far surpasses the 36.02% performance of Berkshire Hathaway led by 'Oracle of Omaha' Warren Buffett during the same period, but also creates the largest leading gap since the dot-com bubble era.
According to the latest analysis by financial market chart company Barchart, the ratio of MicroStrategy to Berkshire Class B stocks has climbed to 0.72, rapidly approaching the historical high point of the dot-com bubble era, indicating high investor recognition of digital asset investment strategies.
Source: Barchart. The ratio of MicroStrategy to Berkshire Class B stocks has risen to 0.72, quickly approaching the historical high point of the dot-com bubble period.
Becoming the largest corporate holder of Bitcoin, investment performance overwhelmingly suppresses traditional assets.
Under the leadership of founder Michael Saylor, MicroStrategy has risen to become the world's largest corporate holder of Bitcoin. According to data from Bitcoin Treasuries, MicroStrategy currently holds 331,200 Bitcoins, which, at the current market price of $91,500 per Bitcoin, has a total value of an astonishing $30.3 billion.
It is worth noting that the company's most recent large-scale purchase occurred yesterday (11/18), as indicated in documents submitted to the SEC, spending $4.6 billion to acquire 51,780 Bitcoins at an average price of $88,627, keeping the company's average purchase cost at $49,874 per Bitcoin. These Bitcoin reserves have accounted for over 1% of the current market circulation, highlighting MicroStrategy's significant position in the digital asset market.
Source: Bitcoin Treasuries. MicroStrategy currently holds 331,000 Bitcoins.
Even more surprisingly, MicroStrategy's investment performance not only far exceeds Berkshire's, but also surpasses the S&P 500 Index's (S&P 500) increase of 71.31%, as well as the major investment targets within the Berkshire portfolio. Among them, Bank of America (BAC) stock price rose by 76.15%, American Express (AXP) grew by 171%, and Apple (AAPL) stock price climbed by 86%. The performance of these traditional finance and tech giants pales in comparison to MicroStrategy. Even Bitcoin itself had an increase of 673.83% during the same period, which is far less than MicroStrategy's stock price surge.
The adoption of Bitcoin reserves by corporations has become a new trend, and the market outlook is highly anticipated.
Such impressive investment results are overturning traditional investment views on cryptocurrencies. Despite Buffett once belittling Bitcoin as 'rat poison squared,' his late business partner Charlie Munger even predicted in 2021 that Bitcoin's price would ultimately go to zero, but MicroStrategy's successful example has already begun to have a significant demonstrative effect in the corporate world.
Further reading.
Once criticized Bitcoin as a 'toxic waste'! Buffett's ally Charlie Munger has passed away, revealing '12 investment viewpoints' during his lifetime.
The latest American battery materials supplier Solidion Technology has officially announced in November that it is adopting Bitcoin as a reserve asset and has completed its first purchase. The company plans to invest 60% of its excess cash reserves into Bitcoin and has committed to converting interest income from other investments (such as money market accounts) into Bitcoin, demonstrating high confidence in digital assets. Similarly, the Tokyo-listed investment company Metaplanet in Japan also adopted a similar strategic reserve policy in May.
MicroStrategy founder Michael Saylor holds a very optimistic view on the future development of Bitcoin. He boldly predicts that Bitcoin's price could soar to an astonishing $13 million within the next 21 years. While this prediction may sound unbelievable, considering Bitcoin's role as a strategic asset against inflation and its outstanding performance in enhancing shareholder value, more and more corporations may follow MicroStrategy's lead and incorporate Bitcoin into their reserve asset portfolios.
With the continued adoption by institutional investors and more corporations incorporating Bitcoin into their reserve assets, the digital asset investment revolution that began with MicroStrategy seems to be just getting started. This not only proves the importance of digital assets in corporate financial management but also provides a compelling case for the traditional investment community's transition to digital.
[Disclaimer] Markets have risks, and investments should be made cautiously. This article does not constitute investment advice, and users should consider whether any opinions, viewpoints, or conclusions in this article align with their specific circumstances. Investment based on this is done at one's own risk.
'Is Bitcoin Really Great? MicroStrategy Invests Another $4.6 Billion, Stock Price Surge Overwhelms Buffett's Company.' This article was first published in 'Crypto City.'
