The fortunes of software development company MicroStrategy Inc. MSTR have soared since it pivoted to a Bitcoin BTC/USD holding strategy.
Interestingly, the company's stock returns have dwarfed even Bitcoin's gains since the time it made the treasury move.
What Happened: MicroStrategy adopted Bitcoin as its primary reserve asset on August 10, 2020, becoming the first publicly listed company to pursue this strategy.
Since then, shares of the company have swelled nearly 1200%, surpassing blockbuster performers like NVIDIA Corporation. (NASDAQ: NVDA), which surged roughly 950%.
What was particularly interesting was the fact that the so-called Bitcoin Development company outperformed even Bitcoin in as many years. Since August 10, 2020, King Crypto has jumped 488%, significantly lower than MicroStrategy's gains.
See Also: Bitcoin A CIA Creation? Tucker Carlson Believes So: ‘They Got There First. It’s Honey Trap’
Why It Matters: This outperformance was also highlighted by MicroStrategy co-founder Michael Saylor during the firm's second-quarter earnings call.
"MicroStrategy’s objective was initially to escape the malaise of being a non-big tech company, and then it was to track the bitcoin index, and now it has become to outperform Bitcoin," Saylor announced.
The firm reported lower-than-expected second-quarter revenue on Thursday. Its Bitcoin stash was worth more than $14 billion, 70% higher than the original purchase price.
Price Action: At the time of writing, Bitcoin was exchanging hands at $64,367.15, up 0.07% in the last 24 hours, according to data from Benzinga Pro. Shares of MicroStrategy were up 3.19% in after-hours trading after closing 6.36% lower at $1511.81 during Thursday's regular session.
Photo Courtesy: Shutterstock.com
Read Next:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
