The stock performance of MicroStrategy, a business intelligence company, highlights the difference that adopting the Bitcoin strategy could make for any publicly traded firm.
The MicroStrategy Bitcoin story started in August 2020 when it resolved to proactively adopt the premier asset as its primary treasury reserve. Since then, the software firm has acquired 252,220 BTC.
Besides the massive unrealized profit, MicroStrategy’s stock, MSTR, has surged significantly. Since it started investing in Bitcoin, MSTR has surged by a significant margin.
Such price performance has resonated within the global market, making a case for public firms to apply this template for similar results.
CryptoQuant Analyst Compares MSTR with Bitcoin Price
In this Bitcoin news today, a Wednesday analysis from CryptoQuant’s CEO, Ki Young Ju, shows a growing correlation between MicroStrategy’s stock and Bitcoin. However, MSTR has largely outperformed Bitcoin’s price in the past two years.
Per the analysis, Bitcoin has grown 237% since 2022, rebounding from an intense bear market. Although MSTR faced a similar plight, the stock surged three times more than the digital asset, with a 669% uptick.
Bitcoin’s high-return tendency and hedge against inflation have been the major characteristics driving its adoption.
Nevertheless, MSTR’s recent performance has led to the conclusion that public firms could benefit immensely from strategically investing in the largest crypto asset by market cap.
Furthermore, Ju pointed to the recent correlation between Bitcoin and MSTR. During the 2021 market rally, the duo showed variance as Bitcoin largely outperformed the stock. However, as MicroStrategy acquired more sats, its correspondence with the premier asset grew extensive.
Firms Attest to the Rewarding Bitcoin Strategy
MicroStrategy’s Bitcoin strategy has encouraged firms globally to adopt Bitcoin as a treasury reserve. Notably, other firms also attest to the positive market implications of hedging their reserve with Bitcoin.
In April, Japanese-based Metaplanet adopted the MicroStrategy-postulated Bitcoin strategy. The investment firm endorsed the approach following Yen’s devaluation and growing economic instability in Japan.
Since then, Metaplanet’s 3350.T stock has surged by a staggering 443.2%, outperforming most traditional stocks. Interestingly, the publicly traded asset has embarked on this run despite Bitcoin’s underperforming price.
The price performance of public companies that have used Bitcoin as a primary treasury reserve sets the pace for further adoption. It bears mentioning that the number of firms adopting the premier asset is on the rise, with Semler Scientific and Cathedra joining this year.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
