Author: Alex O’Donnell, CoinTelegraph; Translated by: Bai Shui, Jinse Finance
According to MSTR Tracker data, MicroStrategy's Bitcoin buying spree has generated over $17 billion in unrealized profits.
According to MicroStrategy's MSTR Tracker database, MicroStrategy started as a software company and has purchased over $23 billion worth of Bitcoin since 2020 as part of founder Michael Saylor's unconventional corporate funding strategy.
These purchases have paid off. Data shows that on December 4, Bitcoin's price surpassed $100,000 for the first time ever, and the Bitcoin held by MicroStrategy is valued at over $40 billion.
Source: MSTR Tracker
Best Performing Stocks
MicroStrategy's stock performance has even outperformed the spot price of BTC. According to data from Google Finance and Slickcharts, MSTR's stock price has risen over 475% year-to-date, nearly exceeding all stocks in the S&P 500 index.
As of December 5, MSTR stated its total market capitalization is approximately $92 billion, more than twice the value of the Bitcoin the company holds.
Analysts say that as MicroStrategy's acquisition frenzy accelerates, the stock will rise further. According to MSTR Tracker data, as of December 5, the company holds approximately 400,000 Bitcoins.
On November 25, benchmark fintech analyst Mark Palmer pointed out that he raised MSTR's target price from $450 per share to $650 per share. Data from Google Finance shows that the stock is currently priced at about $394 per share.
Source: MicroStrategy
Increase in Bitcoin Purchases
During the earnings call on August 1, MicroStrategy doubled its Bitcoin purchase volume by committing to a unique performance metric: Bitcoin yield.
The Bitcoin yield measures the ratio of Bitcoin holdings to shares outstanding and effectively benchmarks each share of Bitcoin as a measure of corporate performance.
On October 30, the company revealed plans to raise $21 billion in equity and another $21 billion in debt to fund a multi-billion-dollar Bitcoin acquisition spree over three years, referred to as the '21/21 plan.'
Palmer stated that MicroStrategy's 'controversial strategy has drawn many critics, but it provides ample reason for its significant impact on the company's stock price, as MicroStrategy's stock has outperformed nearly all major U.S. companies over the past four years.'
