MicroStrategy’s Bitcoin made a $17 billion profit by buying watches.
MicroStrategy’s (MSTR) purchases of Bitcoin (BTC) resulted in over $17 billion in unrealized profits, according to data from MSTR Tracker.
MicroStrategy, originally a software company, has purchased more than $23 billion in BTC since 2020 as part of founder Michael Saylor’s unconventional corporate finance strategy, according to MSTR Tracker, a MicroStrategy database.
The purchase was a success. On December 4, the price of BTC surpassed $100,000 per coin for the first time in history, and MicroStrategy’s BTC vaults are now worth more than $40 billion, data shows.
source: MSTR Tracker
relevant: MicroStrategy’s $42 Billion Bitcoin Bet Is Bullish for Shareholders – Analyst
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MicroStrategy’s stock performed much stronger than BTC’s spot price. Year to date, MSTR stock is up more than 475%, outperforming almost every stock in the S&P 500, according to data from Google Finance and Slickcharts.
As of December 5, MSTR estimated its total market capitalization to be approximately $92 billion, a premium of more than double the value of the company’s underlying BTC holdings.
Analysts expect MicroStrategy’s stock price to rise further as its buying momentum accelerates. According to MSTR Tracker, the company held approximately 400,000 BTC as of December 5.
On November 25, Benchmark fintech analyst Mark Palmer told Cointelegraph that he had raised his price target for MSTR from $450 to $650 per share. The stock is currently trading at about $394 per share, according to Google Finance.
source: MicroStrategy
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In its Aug. 1 earnings call, MicroStrategy doubled its BTC purchases by promising a unique performance indicator: Bitcoin yield.
Bitcoin returns measure the ratio of BTC holdings to outstanding shares, effectively setting BTC per share as a benchmark for corporate performance.
On October 30, the company revealed plans to raise $21 billion in equity and an additional $21 billion in debt to finance billions of dollars in BTC purchases over three years, dubbed the “21/21 Plan.”
MicroStrategy’s “controversial strategy has attracted many detractors, (but) its dramatic impact on the company’s stock price is well justified, as MicroStrategy’s stock price has outperformed that of virtually every other large company in the United States over the past four-plus years. provided,” Palmer said. .
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