The last bull market for Bitcoin (BTC) was fueled by institutional investors who acquired assets at historical prices. MicroStrategy (NASDAQ: MSTR), a business intelligence company located in the United States, has invested in Bitcoin in accordance with the Bitcoin standard.
After beginning to acquire the flagship cryptocurrency, the company’s stock has outperformed other conventional investment vehicles. Since MSTR embraced the Bitcoin standard on August 10, 2020, the stock has risen 69.31% as of October 14, according to statistics gathered by Finbold.
The U.S. dollar had the second-best performance throughout the time at 20,70%, followed by the S&P 500 index at 6.60%. Other lagging assets include the NASDAQ index (-5.89%), gold (-18.05%), and silver (-36.95%).
Despite MicroStrategy’s stock performance relative to Bitcoin, the firm has become one of the largest losers of the continuing cryptocurrency collapse. During the second quarter of 2002, MSTR reported quarterly sales of $122.1 million, below projections of $126 million, and a quarterly loss of $918.1 million.
Bitcoin holdings were responsible for $917,8 million of the losses. MicroStrategy’s Bitcoin holdings were then worth about $3 billion, compared to the purchase price of $3.975 billion.
Intriguingly, the corporation has continued to make purchases throughout market declines, with the most recent Bitcoin acquisition occurring between August and September. According to a report by Finbold on September 20, the corporation acquired an additional 301 Bitcoins at an average price of $19,851 per coin, totalling over $6 million.
Despite this, it is noteworthy that Bitcoin has moved in tandem with stocks, demonstrating historical linkage as the economy faces high inflation and rising interest rates. However, the circumstance has increased the prominence of assets such as the U.S. dollar, which has risen to record highs while damaging other world currencies.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.