- MicroStrategy made huge Bitcoin purchases in Q4 2023, spending $1.25B to acquire 190,000 BTC now worth $8B total.
- Since first buying Bitcoin in 2020, MicroStrategy’s stock price has surged 305%, dwarfing gains in Bitcoin (260%), S&P 500 (48%), and gold (1%).
- Hypothetical scenarios show MicroStrategy’s returns could reach 135% if Bitcoin hits $100k, or up to 660% with added leverage if Bitcoin reaches $250k.
MicroStrategy, a business intelligence company, made waves in 2020 when it started converting cash reserves into Bitcoin. This strategy has paid off remarkably well, dwarfing the returns of traditional assets like stocks and gold.
MicroStrategy’s Massive Bitcoin Purchase in Q4 2023
In the fourth quarter of 2023, MicroStrategy made its largest Bitcoin purchase yet, spending $1.25 billion to acquire additional BTC. This brought the company’s total Bitcoin holdings to around 190,000 BTC, now worth a staggering $8 billion.
MicroStrategy’s Stock Price Surges 305%
According to data from MicroStrategy’s Q4 2023 earnings presentation, its stock price has surged 305% since first investing in Bitcoin in August 2020. In comparison, Bitcoin itself rose 260% during this period, while the S&P 500 was up 48% and gold increased only 1%.
Hypothetical Returns Under Different Bitcoin Price Scenarios
MicroStrategy’s earnings presentation also outlined hypothetical scenarios showing returns based on varying Bitcoin prices. For example, if Bitcoin rose from $43,000 to $69,000, MicroStrategy’s net asset value would increase 60%. With Bitcoin at $100k, returns could reach 135%, and a Bitcoin price of $250k could mean a 480% surge.
Adding MicroStrategy’s existing leverage could further boost these returns. With Bitcoin at $69,000, returns could be 85% higher, potentially reaching 660% at a Bitcoin price of $250k. An additional $0.5B of leverage could substantially increase returns.
MicroStrategy’s Bitcoin Bet Pays Off
In summary, MicroStrategy’s heavy investment in Bitcoin has been a winning strategy so far. While risky, the potential returns are astronomical if Bitcoin continues appreciating. So far, MicroStrategy’s stock has dramatically outperformed traditional assets. Only time will tell whether this strategy continues paying dividends moving forward.
