Bitcoin price volatility continues, briefly reclaiming $65,000 before settling around $64,280. However, the recent price action doesn’t seem to faze Michael Saylor, a vocal Bitcoin advocate and co-founder of business intelligence giant MicroStrategy. In a recent tweet, Saylor highlighted how his company’s “Bitcoin strategy” has led to performance significantly exceeding that of other leading technology companies.
Saylor’s tweet featured a chart comparing the performance of Bitcoin and MicroStrategy stock against traditional assets and major tech stocks since August 10th, 2020, the date of MicroStrategy’s first Bitcoin purchase. The results are stark. Bitcoin has surged by a whopping 442% over this period, dwarfing the gains of the S&P 500 (64%), Nasdaq 100 (60%), and even traditional safe-haven assets like gold (19%). Silver and bonds have even seen negative returns of 1% and 18%, respectively.
MicroStrategy’s stock price performance has been equally impressive. Since August 2020, the company’s share price has skyrocketed by a staggering 1,206%. This leaves tech giants like Nvidia (948%), Tesla (145%), and even established players like Google (131%) and Microsoft (101%) in the dust.
Saylor attributes this outperformance to MicroStrategy’s consistent Bitcoin acquisition strategy. The company has been aggressively adding Bitcoin to its balance sheet, treating it as a long-term store of value. Additionally, they have raised capital through convertible senior notes to further fuel their Bitcoin purchases. This strategy has been executed twice in 2024 alone.
Saylor’s unwavering support for Bitcoin extends beyond corporate strategy. He has been a vocal proponent of the cryptocurrency on his social media platform, frequently posting content related to Bitcoin and its potential.
This latest development reignites the debate about Bitcoin as a viable investment strategy. While Saylor’s approach has yielded significant returns for MicroStrategy, it’s important to remember that Bitcoin remains a highly volatile asset. Investors should carefully consider their risk tolerance before following suit.
The recent Bitcoin price rally could be attributed to the Federal Reserve’s decision to maintain interest rates. Earlier pronouncements by Fed chairman Jerome Powell suggesting potential rate cuts might have also played a role in the short-lived price spike. As the dust settles, Bitcoin’s journey towards mainstream adoption continues, with companies like MicroStrategy acting as case studies for its potential benefits and risks.
