Shares of MicroStrategy, the American technology company led by Michael Saylor, reached an all-time high of around $230 on Nasdaq. This figure marks a record in the company’s history.
According to the data provided by TradingViewMicroStrategy shares have increased by 380% in a matter of 9 monthsafter going from 48 dollars in January of this year, to 230 dollars on average in the current month of October.
MicroStrategy shares have increased 384% in a matter of 9 months. Source: TradingView.
This record in stocks is driven by two variables. The first is that MicroStrategy is the publicly traded company with the most Bitcoin/” target=”_blank” rel=”noreferrer noopener”>bitcoins accumulated, with more than 250,000 BTC to date. This is an investment strategy followed for four years.
Overall, MicroStrategy’s strategy is to convert a significant portion of its cash reserves to bitcoin. This decision was driven by Saylor, who sees in the digital currency a true store of value, beyond market fluctuations. Since its adoption in 2020, the company has made constant purchases of bitcoin, investing more than $16 billion in this currency.
The second variable that drives the rise of MicroStrategy shares to historical levels is that the technology company has managed to gain the interest of large financial companies and, therefore, they have invested in it.
BlackRock, one of the giants of the financial world and issuer of the largest bitcoin exchange-traded fund (ETF) in the world, owns a stake significant in MicroStrategy, approximately 7.5%, being the owner of 757,146 shares. This suggests that investing in MicroStrategy has become a form of diversification for those who already believe in the potential of bitcoin.
BlackRock has a notable stake in MicroStrategy. Source: Fintel.
Another company that has a significant stake in MicroStrategy is Vanguard Group, which currently owns 10.35% of the company, equivalent to 1.5 million sharesaccording to Fintel data.
MicroStrategy has so far invested $15.8 billion in bitcoin. These continuous purchases have positioned the company on the map of investments in the largest digital currency in the world, demonstrating a firm commitment to the future of this technology.
Recently, CriptoNoticias reported that MicroStrategy outperformed the S&P 500 thanks to its investment strategy in bitcoin, demonstrating the sustainability of its business model based on the currency and showing constant growth since its adoption in 2020.
The rise of MicroStrategy shares to approximately USD 230 and its investment strategy in bitcoin not only reflect renewed interest in this asset, but also in the company as an investment vehicle.
With the backing of heavyweight financial institutions and outperformance of traditional market indices, MicroStrategy could be on its way to being a key player in the global financial fabric.
MicroStrategy’s continued bitcoin purchases have established a pattern that other companies, such as Japan’s Metaplanet, appear to be following. This Japanese company has adopted similar tacticsreflecting a growing trend among corporations towards investment in BTC, as reported by CriptoNoticias.
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