MicroStrategy’s Bitcoin Investments Yield $17B in Profit

MicroStrategy (MSTR) has reaped over $17 billion in unrealized profits from its massive Bitcoin acquisitions, according to data from MSTR Tracker.

Originally focused on software, the company transitioned into a high-profile Bitcoin investor under founder Michael Saylor’s unconventional approach to corporate treasury management. Since 2020, MicroStrategy has accumulated more than $23 billion worth of BTC, making it a significant player in the cryptocurrency space.

That gamble has paid off in a big way. On December 4, Bitcoin prices surged past $100,000 per coin for the first time, catapulting the value of MicroStrategy’s BTC holdings to over $40 billion, according to MSTR Tracker.

Top Performing Stock

MicroStrategy’s stock has seen even greater gains than Bitcoin itself. Year-to-date, MSTR shares have soared over 475%, outperforming nearly every stock in the S&P 500, according to Google Finance and Slickcharts.

As of December 5, the company’s market capitalization stood at approximately $92 billion—more than double the value of its Bitcoin reserves.

Market analysts predict further growth for MicroStrategy as it ramps up its Bitcoin acquisitions. The company now owns around 400,000 BTC, according to MSTR Tracker.

On November 25, Benchmark fintech analyst Mark Palmer raised his price target for MSTR from $450 to $650 per share. At present, the stock trades at roughly $394 per share, as per Google Finance.

More Bitcoin Buys

MicroStrategy reiterated its Bitcoin commitment during its August 1 earnings call, introducing a unique metric: Bitcoin yield. This measures the ratio of BTC holdings to outstanding shares, effectively aligning the company’s performance with its Bitcoin investments.

On October 30, the firm unveiled its ambitious “21/21 Plan,” aiming to raise $21 billion in equity and another $21 billion in debt to fund a three-year, multibillion-dollar BTC buying spree.

While some have criticized this high-risk strategy, its impact on MicroStrategy’s share price has silenced many skeptics. “The company’s controversial approach has faced its share of detractors,” said Mark Palmer, “but its exceptional stock performance over the last four-plus years has justified the bold move.”

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