MicroStrategy Scores Major Win, Bitcoin's Influence Paying Off?

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American business intelligence and software firm MicroStrategy has continued to enjoy the dividends of its Bitcoin association. With the uptick in the past few weeks, MicroStrategy shares — MSTR — have jumped to a six-month high of $186.09.

Bitcoin paid off for MicroStrategy

Despite its establishment date of November 1989, MicroStrategy started gaining intense attention in August 2020, when it adopted Bitcoin as its Treasury Reserve Asset.

This move was unusual for a Wall Street business at a time when the global economy was close to collapsing. Under Michael Saylor’s leadership, MicroStrategy started buying Bitcoin and remained consistent.

Before its Bitcoin adoption in 2020, the company’s share price traded well below the $20 mark. However, with the firm’s resolute embrace of crypto, investors have continued liking MSTR, injecting liquidity along the way.

Within the space of four years, MicroStrategy stock has outperformed the majority of its Wall Street counterparts. Shares have surged by more than 446% in the trailing 12-month period. Since August 2020, MSTR has skyrocketed by over 1,166.7%.

While its Bitcoin adoption has helped it surpass this historic milestone, MicroStrategy stock is still below its March 10, 2000, all-time high (ATH) of $313.

Profitability differs

Despite the share price action, MicroStrategy has a rare profitability track record, drawing on its Bitcoin holdings. 

With its last purchase, the company sold 7,420 BTC for approximately $458.2 million at about $61,750 per Bitcoin. For that purchase on Sept. 20, MicroStrategy said it has achieved a BTC yield of 5.1% QTD and 17.8% YTD. 

The company now HODLs 252,220 BTC, acquired for approximately $9.9 billion at about $39,266 per Bitcoin. With Bitcoin’s current price coming in at $62,430.35, this total holding is worth $15.7 billion. With a $5.8 billion gross profit raked in, investors might be more confident about betting on MSTR because of its promising future outlook.