Microstrategy (MSTR) has “outperformed every asset class and big tech stock” since the company adopted a bitcoin strategy and started accumulating the cryptocurrency in its corporate treasury, says CEO Michael Saylor. The pro-bitcoin executive will be stepping down as the CEO of Microstrategy and take the role of the company’s executive chairman to focus on bitcoin.
Microstrategy’s Performance Since Adopting Bitcoin Strategy
Microstrategy Inc. is a Nasdaq-listed company that makes software. On Wednesday, CEO Michael Saylor posted the following tweet:
Since adopting a bitcoin strategy, MSTR has outperformed every asset class & big tech stock.
He added that the price of bitcoin increased 94% during that time period while the S&P500 rose 23% and Nasdaq climbed 13%. However, the prices of gold, silver and bonds have fallen 13%-14% and 29%, respectively. Microstrategy used a Bitcoin strategy during the third quarter 2020.
His explanation was in another tweet
Microstrategy has seen its enterprise value rise by +730% (+$5 Billion) since adopting a Bitcoin strategy. MSTR also rose +123%.
When comparing the performance of Microstrategy’s stock to big tech stocks since the adoption of a bitcoin strategy, Saylor noted that MSTR outperformed Alphabet/Google (GOOG), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook-owner Meta (META), and Netflix (NFLX).
Microstrategy’s corporate strategy includes business analytics as well as bitcoin. The bitcoin strategy is to “acquire and hold bitcoin long-term; purchase bitcoin through use of excess cash flows, and debt and equity transactions,” according to the company’s Q2 financial results presentation.
According to the software company, it currently holds approximately 129,699 bitcoins. These were purchased at an average price of $30,000.664 each, plus fees and expenses. The total cost base is $4 billion. Microstrategy reported that it had suffered bitcoin impairment costs of $917.8million in its second quarter. These are not cash charges because BTC prices fluctuate.
Saylor steps down as CEO in order to focus on strategy
Microstrategy announced Tuesday that Saylor would be stepping down as CEO and will assume the position of executive chairman effective August 8. Phong Le, the company’s current chief financial officer, will become the new CEO.
Saylor will continue to be the Chairman of the Board of Directors and an Executive Officer of the Company. He has been the CEO since 1989. He detailed:
As president, I can focus on the bitcoin advocacy efforts and bitcoin acquisition strategy.
“I believe that splitting the roles of chairman and CEO will enable us to better pursue our two corporate strategies of acquiring and holding bitcoin and growing our enterprise analytics software business,” the outgoing CEO commented.
“In my next job, I intend to focus more on bitcoin,” he tweeted Wednesday.
What do you think about Microstrategy’s performance since adopting a bitcoin strategy? Please leave your comments below.
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