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MicroStrategy Inc. (MSTR) has achieved a major milestone, breaking into the top 100 publicly traded companies in the U.S., ranking 97th. This accomplishment follows a stunning 12% surge in its stock price, which closed at $430 per share, driven by Bitcoin’s historic climb to over $94,000.
MicroStrategy’s Stock Surges Over 500% in 2024
In 2024, MicroStrategy has emerged as one of the most remarkable stories in the financial markets. The company’s stock has soared over 500% year-to-date, far outpacing Bitcoin’s impressive 100% growth during the same period. Over the last five years, MicroStrategy’s stock has skyrocketed 2,739%, outperforming even tech giant NVIDIA (NVDA), which gained 2,688% in the same timeframe.
This incredible growth is largely attributed to MicroStrategy’s bold adoption of Bitcoin as a treasury asset, initiated in August 2020.
A $30 Billion Bitcoin Portfolio
MicroStrategy currently holds 331,200 Bitcoin, valued at over $30 billion based on current market prices. On November 18, the company revealed it had acquired an additional $4.6 billion worth of Bitcoin and announced plans to raise $1.75 billion through convertible notes to fund further acquisitions.
These senior convertible notes, set to mature in December 2029, offer a 0% interest rate and allow investors to convert debt into equity. If oversubscribed, the issuance could increase to $2 billion, further enhancing the company’s Bitcoin reserves.
This innovative strategy has proven appealing to investors, as it allows them to benefit from MicroStrategy’s rising stock value or reclaim their principal upon maturity.
MicroStrategy’s Stock Continues to Rally
As of Wednesday’s pre-market trading, MicroStrategy’s stock was up over 3%, reflecting sustained investor confidence in its Bitcoin-driven approach. Enthusiasts in the financial world have celebrated this achievement, with many noting the foresight of Michael Saylor, the company’s Executive Chairman, in pioneering this strategy.
Michael Saylor to Pitch Bitcoin Strategy to Microsoft
In a related development, Michael Saylor announced plans to present a three-minute pitch on Bitcoin investment to Microsoft’s board of directors. This follows a shareholder proposal by the National Center for Public Policy Research (NCPPR) urging Microsoft to assess the potential benefits of Bitcoin as a corporate treasury asset.
Saylor emphasized that companies like Microsoft, Apple, Berkshire Hathaway, and Google are missing opportunities to enhance shareholder value by not holding Bitcoin. He highlighted Microsoft’s enterprise value, noting that 98.5% is tied to quarterly earnings, while only 1.5% comes from tangible assets.
The Impact of Bitcoin on Corporate Strategy
Saylor proposed that incorporating Bitcoin could stabilize stock performance and mitigate risks. He stated, “It would be a much more stable stock if half of its enterprise value was based on tangible assets like Bitcoin.”
A Transformative Year for Bitcoin and Institutional Adoption
MicroStrategy’s success aligns with a broader trend of Bitcoin adoption by major corporations amid increasing macroeconomic uncertainties. Rising inflation and geopolitical tensions have pushed more corporate treasurers toward Bitcoin as a hedge and reserve asset.
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