- Saylor claims that MicroStrategy’s Bitcoin investment has outperformed investments in other assets.
- MicroStrategy is the publicly traded company with the largest amount of Bitcoin holdings.
Institutional investors’ significant accumulation of Bitcoin was partly responsible for the leading digital asset’s last bullish market run. One such institutional investor is the business intelligence company, MicroStrategy. After considerable successive BTC accumulation, MicroStrategy founder, Michael Saylor, stated that the company had adopted a Bitcoin standard in which the company’s BTC purchase is not about buying a lot of it.
Instead, it is about investing the company’s balance sheet in the leading digital asset. Since the last bullish run in the crypto market, MicroStrategy’s stock (MSTR) price has outperformed investments in traditional assets such as the S&P 500, Nasdaq stocks, gold, bonds, solver, and the USD.
Recently, MicroStrategy founder and executive chairman, Michael Saylor, tweeted that since MicroStrategy adopted a Bitcoin standard, the company stock’s price has recorded a 5 percent gain. In contrast, investments in traditional assets have recorded negative double-digit losses. Saylor added that the performance comparison is based on data compilation from 10 august 2020. The S&P 500 recorded a -34 percent loss within the period mentioned above, while silver had the poorest performance at -61 percent.
S&P 500 -34%
Performance vs. BTC since 10 August 2020.
— Michael Saylor⚡️ (@saylor) October 15, 2022
MicroStrategy records losses despite adopting Bitcoin standard
Nevertheless, MicroStrategy is one of the biggest victims of the current crypto winter. MSTR recorded a loss of $918.1 million in its Q2 2022 report. The revenue for that quarter was $122.1 million, about $4 million short of the company’s projections. Nearly $917.8 million of this loss was because of the company’s Bitcoin holdings.
MSTR’s Bitcoin valuation has dropped significantly to about $3 billion, a big contrast to the $3.975 billion acquisition value. Shortly after the company released its Q2 2022 report, MicroStrategy’s founder resigned from his position as the company’s CEO. Then, he took an executive chairman role.
Before stepping down, Saylor led MSTR to adopt a Bitcoin standard and was responsible for the largest acquisition of MSTR’s purchase of this crypto asset. Saylor said his role as the MSTR’s executive chairman would enable him to focus more on the company’s Bitcoin advocacy initiatives and acquisition strategy.
He added that separating the roles of chairman and CEO will help the company better pursue its corporate strategy of acquiring and holding Bitcoin and expanding its enterprise analytics software business. MSTR’s new CEO, Phong Le, would oversee its general corporate operations. He was formerly the company’s president.
Strangely, the company keeps increasing its Bitcoin holdings by buying the dip. The company made more Bitcoin purchases between August and September, buying $6 million worth of BTC (301 Bitcoins at an average price of $19,851 per BTC) on the last day of last month.
The acquisition helps MicroStrategy retain its position as the publicly traded company with the largest Bitcoin holdings. It holds 129,218 BTC as of its Q1 2022 report. Nevertheless, many Bitcoin critics have claimed that the perspective that Bitcoin is an inflation-proof asset has been shattered by the current crypto winter.