MicroStrategy, a leading enterprise business firm and a prominent Bitcoin proponent, has seen its stock (NASDAQ:MSTR) reach a nearly two-year high, closing comfortably above $500 on Black Friday. This peak, last witnessed in December 2021, brings the company's market capitalization to a remarkable $7.33 billion. The firm's long-standing strategy of holding onto Bitcoin has paid off significantly, despite starting the year with a quarterly loss, the company’s stock price doubled within a month. MicroStrategy's commitment to Bitcoin began in August 2020 under the guidance of founder and chairman Michael Saylor, primarily as a hedge against inflation.
Michael Saylor expressed bullish sentiments about the upcoming year, citing increasing demand and contracting supply as unprecedented in Wall Street history. By April, MicroStrategy's Bitcoin holdings turned profitable as Bitcoin’s price surged above $30,000. The acquisition of an additional 1,045 Bitcoin increased its total holdings to 140,000 Bitcoin, reducing the average purchase price of its $4 billion digital asset portfolio to $29,803 per coin. Despite facing a $24 million Bitcoin impairment charge in its second-quarter earnings report, the company remained profitable and continued purchasing Bitcoin, amassing 152,800 coins valued at approximately $4.4 billion. This aggressive acquisition strategy has placed MicroStrategy as one of the largest publicly traded companies with Bitcoin on its balance sheet.
Even as Bitcoin showed signs of recovery, MicroStrategy’s stock outperformed the cryptocurrency itself, which was already up 87% for the year. The company's latest quarterly report in early November revealed a net loss of $143.4 million, a significant increase from the $27 million loss in the same period the previous year. Despite this, MicroStrategy maintained its Bitcoin buying spree, acquiring an additional 6,067 Bitcoin for $167 million. Currently, the company holds about 0.75% of Bitcoin's total circulating supply, underscoring its deep investment in the cryptocurrency
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