MicroStrategy Inc. (NASDAQ:MSTR), driven by its aggressive bitcoin strategy, shares have gained almost 50% this month, more than 150% over the past six months and over 500% year-to-date. Having almost 331,200 bitcoins valued more than $30 billion, the business has become a major institutional Bitcoin player. MicroStrategy stands to benefit most from the value increase of the bitcoin as it approaches the $100,000 mark among the biggest institutional holders of it.
The company’s trust in the long-term value of Bitcoin is shown by the payments for its Bitcoin purchases made from innovative finance sourcesincluding a recent $3 billion zero-percent convertible senior notes issuing with a 55% conversion premium. Regulatory events include the SEC’s approval of a spot Bitcoin exchange-traded fund, which has attracted growing market interest in cryptocurrencies, have also helped to justify the rise in Bitcoin prices.
These events have increased investor trust and enhanced the value of MicroStrategy’s assets, so positioning the company as a main participant of the increasing institutional acceptance of Bitcoin and the demand for the digital currency. MicroStrategy’s strategy emphasizes its twin functions as a tool for corporate intelligence and a major participant in the bitcoin market, therefore explaining its remarkable stock performance in 2023.
This article first appeared on GuruFocus.
