MicroStrategy's Bitcoin Strategy Has Outperformed Every S&P 500 Company And Even Nvidia Since 2020, Says Michael Saylor

MicroStrategy‘s MSTR bold Bitcoin BTC/USD investment strategy has outperformed every company in the S&P 500, according to the company’s Executive Chairman, Michael Saylor.

What Happened: Speaking with CNBC, Saylor said the success of the firm's Bitcoin-focused approach has significantly outpaced the broader market since its inception in 2020.

Saylor pointed out that MicroStrategy’s Bitcoin investments have generated an annual return of 44% on average since August 2020, compared to the S&P 500’s 12% annual return.

“We beat every single company in the S&P index using Bitcoin strategy,” Saylor noted.

This includes even Nvidia NVDA, the top-performing stock on the index, which saw an 821% increase, while MicroStrategy generated an 825% return by leveraging its Bitcoin holdings.

Also Read: Tether Invests $100M In Agricultural Giant Adecoagro, Expands Beyond Bitcoin Mining, AI Investments

Why It Matters: MicroStrategy, which continues to run its software business as a “cash cow,” has pivoted primarily into a Bitcoin development company.

The firm has pioneered new ways of securitizing Bitcoin, including the issuance of convertible bonds backed by Bitcoin collateral.

Saylor emphasized the firm's success in attracting investors who seek exposure to Bitcoin with reduced volatility through these bonds, which offer 1% interest and premium returns.

“We’re capturing a 50% premium or 50% type BTC yield on that up front,” Saylor explained, offering investors a unique entry into the Bitcoin market without the direct risks associated with cryptocurrency trading.

The strategy has allowed MicroStrategy to tap into opportunities that individual investors typically cannot access, such as borrowing $1 billion at a low interest rate and using it to buy Bitcoin.

Saylor said his vision for the company's Bitcoin holdings aligns with his belief that Bitcoin represents “smart, fast, strong money” that offers liquidity and flexibility in uncertain times.

As MicroStrategy continues to set new benchmarks in its Bitcoin-centric model, the broader implications of this strategy are expected to be discussed at Benzinga's Future of Digital Assets event on Nov. 19.

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Image created using artificial intelligence with MidJourney.