Bitcoin (BTC) has reached a new all-time high this November 21, exceeding $98,000. In the midst of this rally, one company has established itself as an example of how patience and trust in this currency can transform its valuation: MicroStrategy (MSTR).
The company led by Michael Saylor has been one of the most benefited by the revaluation of BTC.
Since August 2020, the company has adopted an aggressive accumulation strategy of this digital asset, which recently reached its highest point with the purchase of 51,780 BTC between November 11 and 17, 2024.
This acquisition, valued at the time at 4.6 billion dollars, raised the company’s reserve to 331,200 BTC. It is the publicly traded entity with the largest number of bitcoin on its balance sheet, according to Bitcoin Treasuries data.
BTC purchases by MicroStrategy. Source: Bitcoin Treasuries.
Saylor’s vision began when MicroStrategy acquired 21,454 BTC on its first operation. Since then, the company has transformed its financial approach, supported by bitcoin as a strategic asset that protects against inflation and enhances its value in the market.
Impact on MicroStrategy Market and Stock
The rebound in the price of bitcoin has had a direct effect on MicroStrategy shareswhich have reached historic highs on the Nasdaq.
In 2020, before his first bitcoin purchase, MSTR shares were trading at $9. Today, its price has risen to $547, which represents an increase of 5,977% in four yearsas seen in the following graph of TradingView.
MSTR price. Sources: TradingView.
This growth not only led MicroStrategy to exceed in trade volume to giants such as Apple, Microsoft and Amazon, but has also redefined its position in the technology market, as reported by CriptoNoticias.
The company’s financing strategy is based on the issuance of senior convertible notes. Recently, MicroStrategy advertisement the issuance of 2.6 billion dollars in these notes, expanding its original plan of 1.75 billion.
These notes, bearing 0% interest and maturing in December 2029, will primarily go toward acquiring more bitcoin. Additionally, starting in 2026, the company will be able to redeem part or all of these notes, ensuring flexibility in its financial strategy.
Is MicroStrategy overvalued or with potential to grow?
MicroStrategy’s success has generated divided opinions. While some economists, like Peter Schiff, say the company is overvalued, other experts, like Charles Edwards of Capriole Investments, disagree.
“$MSTR has to be the most overvalued stock in the MSCI World Index. When it finally collapses, it will be the real bloodbath!” Schiff wrote. in the X network.
On the other hand, Edwards stands out which, with a market capitalization of 106 billion and a 70% premium on the net value of its assets in bitcoin, MicroStrategy still has room to grow.
The businessman also points out that MicroStrategy’s initial plan to raise $42 billion in bitcoin in three years is now “obsolete.”
The company has already acquired 9.6 billion in just 10 days and, with the current trajectory of the market, it could surpass its objectives in less than a year.
Bitcoin: an opportunity for everyone
MicroStrategy’s strategy has not only generated benefits for the company, but can also inspire individual investors.
For example, if a person had invested $12,000 in 1 BTC in August 2020, they would have almost $100,000 today if they had maintained their investment.
For those who do not have the resources of a corporation like MicroStrategy, the investment strategy known as dollar cost averaging (DCA) It is still a viable alternative..
This consists of making recurring purchases of an asset to average its acquisition cost, reducing the impact of market volatility. As MicroStrategy demonstrates, this technique can be key to take advantage of the bullish potential of bitcoin.
The MicroStrategy case highlights how a bold vision and consistent strategy can transform the destiny of a company.
In a financial world increasingly interconnected with cryptoassets, companies that trust in the potential of bitcoin are finding new ways to generate value and lead markets. As MicroStrategy has demonstrated, bitcoin is not only a digital asset; It is a powerful tool to reward those who have the patience to believe in their future..
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