Under the guidance of Michael Saylor, MicroStrategy (NASDAQ: MSTR) has positioned itself as the publicly traded company most closely associated with the dynamics of Bitcoin (BTC).
As the largest corporate owner of Bitcoin, the company shows no indications of slowing its accumulation strategy. With the current bull market gaining momentum and BTC poised to surpass the $100,000 mark imminently, MSTR shares have reaped significant benefits.
Saylor and MicroStrategy are committed to acquiring BTC regardless of market fluctuations — and thus far, this strategy seems successful, as their purchasing approach is surpassing even that of the most enthusiastic miners. Notably, it is currently outperforming Bitcoin itself. As of now, one Bitcoin is valued at $97,930,000, following a 46% increase over the past month, which has propelled year-to-date gains to 132.03%.
In a definitive indication of bullish sentiment, on November 25, MicroStrategy revealed that it had finalized its largest acquisition to date — securing 55,000 BTC for $5.4 billion, according to its latest form 8-K filing.
MicroStrategy’s Bitcoin purchases continue to create shareholder value
This latest acquisition was made at an average cost of $97,862 per Bitcoin. MicroStrategy now possesses 386,700 BTC, purchased at an average price of $56,761, and the company has invested a cumulative total of $21.9 billion in the digital currency.
In its reports, MicroStrategy utilizes a measurement known as Bitcoin yield — essentially comparing the company’s BTC holdings against diluted MSTR shares outstanding. By monitoring the percentage change in this ratio, the company can ascertain whether its acquisition strategy is effectively generating value.
At the time of the latest 8-K filing, the year-to-date BTC yield stood at 41.8% — following this recent purchase, it has risen to 59.3%.
While MSTR stock is highly susceptible to fluctuations in Bitcoin’s price, the current bull market has seen the strategy yield impressive results. However, as many analysts have cautioned, should a recession occur that coincides with a downturn in the cryptocurrency market, MicroStrategy might find itself compelled to liquidate its holdings, potentially leading to further declines in prices.
Given that a large portion of its operations relies on a single asset, MSTR stock inherently carries significant risk — yet, with growing institutional adoption, Saylor and his team may still realize their vision of establishing the first ‘Bitcoin bank’, enabling them to diversify more effectively from their current concentrated business model.
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