The Cloud software provider Microstrategy has had a 324.08% increase in stock price this year. Their Big Bitcoin bet is winning the investment game for 2023. The positive wave from bitcoin profits has also helped their shares rise up.
The current price of MicroStrategy shares on $615, which was around $145 at the start of 2023. With this staggering rise, MicroStrategy’s share price has outperformed BTC itself in terms of yearly gain. The corporation’s market capitalization is $9.556 billion.
There are several reasons behind Microstrategy’s strong stock performance. The price surge of Bitcoin being a major one. Other key factor behind this rise is with BlackRoacks entry several institutions following in the crypto investment.
Here is an analysis of Microstrategy’s Bitcoin buying spree in 2023 in more detail:
Over the year, the price of Bitcoin has risen, reaching a peak of $44,000. One of the causes of the increase in stock prices of many firms is the rising price of bitcoin. The price of Bitcoin has a direct correlation with Microstrategy’s revenue, as seen in the following relationship.
Microstrategy has steadily increased its holdings of Bitcoin over the year, which has contributed to the remarkable improvement in each quarter’s financial performance.
MicroStrategy added 2,500 Bitcoins at the beginning of the year, and in April, it added 1,045 Bitcoins. Because of the advent of Bitcoin, MicroStrategy was able to declare a $94 million net income for the first quarter of 2023.
In its Q2 earnings report, MicroStrategy attributed the excellent outcomes to the notable rise in the price of Bitcoin. Between April 29 and June 27, the business paid a whopping $347 million in cash to purchase an additional 12,333 bitcoins.
In its third-quarter financial report, MicroStrategy stated that, as of September 30, it had purchased 158,400 Bitcoin for a total of $4.68 billion. MicroStrategy has made substantial gains from its audacious $4.27 billion wager on Bitcoin (BTC).
In the last month, 16,130 Bitcoins for 593.3 million at an average price of $36,785 per bitcoin in cash. The price of Bitcoin is extremely volatile, therefore a big decline might have a detrimental effect on MicroStrategy’s earnings and stock value.