MicroStrategy’s $MSTR Soars 3000% After Pivoting to Bitcoin—Wall Street Scrambles to Explain

Michael Saylor’s enterprise software firm became the ultimate Bitcoin proxy—and left traditional finance clutching its spreadsheets.

Once a sleepy business intelligence player, MicroStrategy now trades like a leveraged BTC ETF on methamphetamines. The 30x surge since 2020 makes Tesla’s crypto dabble look like child’s play.

Wall Street analysts—who once called Saylor’s strategy ’corporate suicide’—now tripping over themselves to slap ’buy’ ratings on the stock. Funny what a few billion in unrealized gains does to institutional conviction.

• MicroStrategy’s stock ($MSTR) surged 3,142% since adopting Bitcoin as its treasury reserve.

• The firm plans to raise $800M more via debt offerings to buy additional Bitcoin, reinforcing its “Bitcoin Standard” strategy.

• Bitcoin price breaks $96,500 amid 8% volume surge, signaling bullish momentum as institutional interest grows.

Strategy’s (formerly MicroStrategy) decision to pivot to Bitcoin (BTC) has generated huge returns for its investors. Its shares have increased by 3,142% since 2020 when the firm first adopted its BTC-focused treasury strategy.

The firm’s stock performance has surpassed that of major tech firms and traditional assets as revealed by executive chairman, Michael Saylor in a recent tweet. The company’s fortunes have witnessed significant changes after it decided to hold BTC as its primary reserve asset, a move that’s now known as the “Bitcoin standard.”

A comparison with other investments over the same period is proof that this decision has been a massive success. Strategy‘s stock performance is nearly four times the 715% returns delivered by BTC itself.

The company also performed better than top tech stocks, such as Tesla and Nvidia which posted gains of 205% and 916%, respectively. In addition, $MSTR’s performance was far better than traditional assets, like the S&P 500 and gold, which recorded modest gains of 68% and 21%, respectively.

Source: X (@saylor)

Strategy’s approach involved continuous accumulation of the leading cryptocurrency. It now holds more than 214,000 BTC, which is worth nearly $15 billion.

Strategy to Raise Fresh $800M for More BTC Acquisitions

The company funded its cryptocurrency purchases using various financing methods, like convertible note offerings. With these finance strategies, Strategy essentially became a publicly-traded BTC proxy, which allowed traditional investors to gain indirect exposure to cryptocurrency through the stock market.

Based on its Bitcoin exposure, Strategy’s valuation now depends on the value of its BTC holdings and not on traditional business metrics. Still, the company has stated that it plans to keep buying more BTC.

Recently, it announced plans to raise another $800 million using debt offerings to make more Bitcoin purchases. Saylor remains a strong Bitcoin advocate and has consistently argued that the leading cryptocurrency will eventually replace gold and become the preferred store of value across the world.

Rising Trade Volume: Bitcoin Price Jumps Past $96,500

Meanwhile, BTC has achieved a significant milestone, it has broken above the $96,500 level and trades at $96,571 at the time of writing, according to CoinMarketCap data. The price gain (which is 2% in the last 24 hours) coincides with a significant rise in trading volume.

This trading volume is up nearly 8% in the last 24 hours and it’s currently $31.12 billion.

Source: CoinMarketCap