MicroStrategy has improved the performance of its stocks compared to BTC in 2023 with its bitcoin-based leveraged strategy. The company’s stock value has increased by over 350% this year, and its total bitcoin holdings have also grown significantly. MicroStrategy finances its bitcoin purchases using long-term low-interest debt and equity offerings, which helps the stock gain more value than bitcoin itself.
Analysts indicate that MicroStrategy‘s stocks behave almost like a “leveraged bitcoin ETF.” As of September, the company holds 205,000 bitcoins, with a market value of approximately $7.7 billion. MicroStrategy‘s stock is more affected by the increase in bitcoin prices because the company can acquire more bitcoin through borrowing.
This strategy reflects the strong belief of MicroStrategy‘s CEO, Michael Saylor, in bitcoin. Saylor argues that fiat currencies are constantly losing value, asserting that bitcoin is a more secure asset. Additionally, the company’s software business serves as a significant revenue source, supporting its bitcoin acquisition strategy.
MicroStrategy is the largest corporate holder of bitcoin, owning 252,220 BTC at a total cost of approximately $9.9 billion, with these assets valued at over $17 billion.
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