MicroStrategy's Bitcoin Investments Push Stocks to Two-Year High

Shares of MicroStrategy, the institutional business firm known for its bullish stance on Bitcoin, have reached a two-year high.

The company's shares closed Friday above $500, a level not seen since December 2021, according to data from Yahoo Finance.

The company's strategy of holding large amounts of Bitcoin has proven to be a profitable move. Despite starting the year with a 3-month loss, MicroStrategy's stock price doubled within a month.

Michael Saylor, founder and chairman of MicroStrategy, began accumulating Bitcoin to hedge against inflation in August 2020.

In April, MicroStrategy's Bitcoin holdings gained value as the price of Bitcoin surpassed $30,000. The company purchased another 1,045 Bitcoins, bringing its total assets to 140,000 Bitcoins.

In its second-quarter earnings report, MicroStrategy turned a profit despite a $24 million Bitcoin impairment charge.

As the largest publicly traded company with Bitcoin on its balance sheet, it continued its efforts to purchase BTC, amassing 152,800 Bitcoins worth approximately $4.4 billion.

Interestingly, shares of companies investing in Bitcoin have outperformed Bitcoin, which is already up 87% in value.

The company continued its Bitcoin purchasing strategy and purchased an additional 6,067 Bitcoins for an additional $167 million.

MicroStrategy has become a significant asset holder, controlling approximately 0.75% of Bitcoin's total circulating supply.

It was also stated that MicroStrategy's shares will benefit from the upcoming Bitcoin halving event.

There is a nearly 90% correlation between MicroStrategy's stock price and the price of Bitcoin. This leads financial analysts like Berenberg to predict that MicroStrategy's shares will rise along with Bitcoin.