According to CryptoPotato, MicroStrategy, the business intelligence software giant co-founded by Michael Saylor, has seen its stock price skyrocket in recent weeks and months, outperforming major US stock market indexes. This is likely due to the company's massive exposure to Bitcoin, as it is the largest corporate holder of the cryptocurrency. Since the start of the year, the S&P 500 has gained just over 8%, while the Dow Jones Industrial Average is up 3.6% and the Nasdaq Composite has increased by just over 1%. In contrast, MicroStrategy's stock has soared by more than 50% and surpassed $1,000 at the end of last week, nearing $1,300.
The company's strong performance is likely related to its Bitcoin holdings. MicroStrategy began accumulating Bitcoin in August 2020, starting with a few multi-million dollar purchases. Over the next three and a half years, the company continued to buy Bitcoin, even as the cryptocurrency's value plummeted from $69,000 to under $20,000. As of the most recent update, MicroStrategy holds 193,000 BTC, which it acquired for just over $6 billion. With the recent increase in Bitcoin's value, the company now has an unrealized profit of $6 billion, essentially doubling its position in just over three years. This demonstrates the power of dollar-cost-averaging and suggests that MicroStrategy's stock moves similarly to Bitcoin, which could be the reason behind its recent multi-year peak.
