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MicroStrategy’s Stock Surges Amid Ongoing Bitcoin Investments
Software company MicroStrategy has seen a significant increase in its stock value as it continues to steadily acquire Bitcoin. MicroStrategy, listed on the Nasdaq as MSTR, experienced a trading price of up to $1,610 per share on Monday, marking a nearly 14% surge over the previous 24 hours. While the stock has since adjusted to $1,484, reflecting a more modest 4% gain for the day, it remains up by an impressive 106% for the month.
Since initiating its Bitcoin investment strategy in 2020 by adding the cryptocurrency to its balance sheet, MicroStrategy has witnessed a remarkable price surge of over 912%. The highest value recorded dates back to 2000, reaching $3,130 per share.
The recent spike in MicroStrategy’s stock value coincided with the announcement of further Bitcoin purchases by the company, solidifying its position as the holder of the largest Bitcoin reserves among all publicly traded companies. At the current market prices, MicroStrategy’s Bitcoin holdings exceed $14.8 billion, with a total stash of over 200,000 BTC, surpassing BlackRock’s Bitcoin ETF, which holds 195,985 Bitcoin.
Today, Bitcoin itself reached a new all-time high price of $72,201 per coin, as reported by CoinGecko. Michael Saylor, co-founder and chairman of MicroStrategy, expressed his confidence in Bitcoin during an interview with CNBC, stating that Bitcoin’s market capitalization would ultimately surpass that of gold. He also emphasized that investing in MicroStrategy’s stock presented a viable avenue for exposure to the digital asset, branding the company as a “Bitcoin development company.”
Saylor underlined the superiority of Bitcoin as an investment compared to traditional assets like gold, equities, bonds, and real estate, highlighting its digital nature. He pointed out that Bitcoin’s availability for trading 168 hours a week sets it apart from other assets that are only traded for a fraction of that time.
MicroStrategy’s initial foray into Bitcoin investments in August 2020 aimed to provide shareholders with superior returns by opting to hold digital assets instead of cash reserves. This strategy has proven successful, leading to ongoing acquisitions of Bitcoin in large quantities. Following MicroStrategy’s lead, several other companies, most notably Tesla, have also embraced Bitcoin as a strategic investment.
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