Up 264%, Is MicroStrategy On Track to Become the First $1 Trillion Crypto Stock?


Right now, there are only a handful of companies with a market cap exceeding $1 trillion. With the exception of Warren Buffett’s Berkshire Hathaway, all of them are high-growth tech stocks. So the natural assumption is that the next great $1 trillion company will be yet another tech company.

But what if the next $1 trillion company is a crypto company instead? That’s the vision for MicroStrategy Inc. (NASDAQ: MSTR), which has absolutely soared in value as a result of its massive Bitcoin (CRYPTO: BTC) holdings. For the year, MicroStrategy is up a resounding 264%, and since 2020, it has outperformed every single S&P 500 stock. So is MicroStrategy really on track to become the first $1 trillion crypto stock?

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The first thing you need to know about MicroStrategy is that it holds 252,220 Bitcoins on its balance sheet, worth a cumulative total of $17 billion at today’s prices. This makes MicroStrategy easily the largest corporate holder of Bitcoin in the world. In fact, MicroStrategy now holds over 1% of all Bitcoin in circulation today.

The company shows no signs of stopping anytime soon. MicroStrategy has been on a Bitcoin buying spree since 2020, and makes regular Bitcoin purchases nearly every month. If anything, MicroStrategy is now ramping up its purchases of Bitcoin. The company’s newest strategy is to issue convertible debt as a way to buy even more Bitcoin in the future.

The path to $1 trillion is actually remarkably simple: Buy as much Bitcoin as possible, and wait for it to appreciate in price. Given that Michael Saylor, founder and executive chairman of MicroStrategy, now thinks that Bitcoin can hit $13 million by the year 2045, a trillion-dollar valuation is certainly within the realm of possibility.

In October, Saylor outlined a brand-new strategy. The plan, quite simply, is to transform MicroStrategy from an enterprise software company into an investment bank. As Saylor notes: “The endgame is to be the leading Bitcoin bank, or merchant bank, or you could call it a Bitcoin finance company.”

Bitcoin symbol with charts and graphs.
Image source: Getty Images.

As part of this strategic transformation, MicroStrategy will begin to create new Bitcoin capital market instruments. From a broad conceptual standpoint, think of MicroStrategy as a giant Wall Street investment bank doing everything that a Goldman Sachs or Morgan Stanley does, but with Bitcoin instead of dollars.



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