MicroStrategy (MSTR) has “outperformed all asset classes and large tech stocks” since the company adopted a bitcoin strategy and began accumulating cryptocurrency in its corporate treasury, CEO Michael Saylor said. The Probitcoin executive will step down as CEO of MicroStrategy and take on the role of the company’s executive chairman to focus on Bitcoin.
MicroStrategy’s performance after adopting the Bitcoin strategy
Nasdaq-listed software company MicroStrategy Inc (Nasdaq: MSTR) reported second quarter results on Tuesday, CEO Michael Saylor tweeted Wednesday.
Since adopting a bitcoin strategy, MSTR has outperformed large-cap tech stocks across all asset classes&
He added that during that time, the price of bitcoin has risen 94%, the S&P500 has risen 23%, and the NASDAQ has risen 23% The P500 is up 23% and the NASDAQ is up 13%. Gold, bonds, and silver, on the other hand, fell 13%, 14%, and 29%, respectively. MicroStrategy has adopted a bitcoin strategy for the third quarter of 2020.
and explained in another tweet.
Since MicroStrategy adopted the bitcoin strategy, its enterprise value is up +730% (+$5 billion) and its MSTR is up +123%.
Comparing MicroStrategy’s equity performance since adopting the bitcoin strategy to major tech stocks, Saylor notes that MSTR has outperformed Alphabet/Google (GOOG), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) ), Facebook-owned Meta (META), and Netflix (NFLX), he noted.
MicroStrategy’s two corporate strategies are business analytics and bitcoin. The bitcoin strategy, according to the company’s Q2 earnings presentation, is to “acquire and hold bitcoin for the long term, use excess cash flow to buy bitcoin, and trade bonds and stocks.”
The software company currently owns approximately 129,699 BTC. The company said it acquired them at an average purchase price (net of fees and expenses) of $30,664 per bitcoin, for a total cost of $4 billion. MicroStrategy recorded a bitcoin impairment charge of $917.8 million in the second quarter, a non-cash charge due toBTCprice volatility BTCprice volatility.
Saylor steps down as CEO to focus on bitcoin strategy
MicroStrategy announced Tuesday that Saylor will step down as the company’s CEO effective August 8 and assume the role of executive chairman. Phong Le, the company’s current chief financial officer, will be the new CEO.
Saylor, who has served as the company’s CEO since 1989, will continue to serve as chairman of the board and executive director. He detailed that.
As executive chairman, I will be able to focus more on the Bitcoin acquisition strategy and related Bitcoin advocacy efforts.
“By separating the roles of Chairman and CEO, I believe I can better pursue our two corporate strategies of acquiring and holding bitcoin and growing our enterprise analytics software business.” The outgoing CEO commented.
“In my next job, I will focus more on Bitcoin,” he tweeted Wednesday.
Image credits: Shutterstock, Pixabay, Wiki Commons