Michael Saylor, the founder and chairman of software company MicroStrategy, has described Bitcoin (BTC) as the ultimate strategy following the company’s recent acquisition of 169 BTC. Saylor expressed this sentiment in a tweet, reflecting on the remarkable increase in MicroStrategy’s stock price since it first embraced Bitcoin.
Since MicroStrategy switched to Bitcoin on August 10, 2020, its stock price has surged by an astonishing 1,206%, outperforming the shares of other tech giants like NVIDIA (NVDA).
According to the data, NVDA has experienced a surge of 948%, while Tesla (TSLA), Google (GOOG), and Microsoft (MSFT) shares have skyrocketed by 145%, 131%, and 101% respectively during the same period. It is worth noting that MicroStrategy’s stock has also outperformed Bitcoin’s gain since August 10, 2022. Within this timeframe, Bitcoin’s price has only increased by 442%. Similarly, the S&P 500, Nasdaq, and Gold have seen modest growth of 64%, 60%, and 19% respectively.
In the second quarter of 2024, MicroStrategy reported a net loss of $102.6 million, primarily due to a $180.1 million impairment charge on its Bitcoin holdings. This figure is significantly higher than the $24.1 million impairment charge recorded in the second quarter of the previous year.
It is worth mentioning that MicroStrategy purchased 169 BTC worth $11.4 million in July. As of July 31, 2024, the company holds a total of 226,500 BTC, acquired at an average price of $36,821 per token, amounting to approximately $8.34 billion. At the current exchange rate of $65,054, MicroStrategy’s 226,500 BTC are now worth $14.73 billion, reflecting a 76.61% increase from their original purchase price.
Despite its significant Bitcoin holdings, the software company intends to raise $2 billion to acquire more BTC. Just yesterday, MicroStrategy filed an application with the U.S. SEC to sell its Class A common stock in order to raise $2 billion. The funds raised will be used for additional BTC purchases and other general corporate purposes.
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