A Record-Breaking Bitcoin Milestone
MicroStrategy’s bold Bitcoin strategy has delivered enormous returns, with the company now sitting on over $17 billion in unrealized profits. According to MSTR Tracker, the software-turned-crypto-investment firm’s Bitcoin holdings surged in value after BTC surpassed $100,000 per coin for the first time on December 4.
MicroStrategy’s Bitcoin treasury, amassed through aggressive acquisitions since 2020, is now valued at over $40 billion. This represents a significant increase from the $23 billion the company spent to purchase its 400,000 BTC stash.
A Stock That Outperforms Bitcoin
MicroStrategy’s stock performance has eclipsed even Bitcoin’s impressive price growth. Year-to-date, MSTR shares have soared by over 475%, outpacing nearly every stock in the S&P 500, according to data from Google Finance and Slickcharts.
As of December 5, the company’s market capitalization reached $92 billion, more than double the value of its Bitcoin holdings. Analysts predict more gains, fueled by MicroStrategy’s ongoing commitment to Bitcoin acquisitions.
Analyst Upgrades and Future Growth
On November 25, Benchmark fintech analyst Mark Palmer raised his price target for MSTR from $450 to $650, citing the company’s robust BTC strategy. Currently trading around $394 per share, the stock is expected to climb further as MicroStrategy continues its buying spree.
The “21/21 Plan” and Bitcoin Yield
MicroStrategy has cemented its commitment to Bitcoin with innovative performance metrics and ambitious funding plans. During its August 1 earnings call, the company introduced a unique metric called Bitcoin yield—a ratio of BTC holdings to outstanding shares—effectively tying corporate performance to Bitcoin accumulation.
On October 30, MicroStrategy announced the “21/21 Plan,” an ambitious three-year initiative to raise $21 billion in equity and $21 billion in debt. These funds will fuel a multibillion-dollar Bitcoin buying spree, reflecting the company’s unwavering faith in the cryptocurrency’s long-term potential.
Despite skepticism from critics, MicroStrategy’s unconventional approach has dramatically boosted its stock price. Benchmark’s Palmer emphasized, “While the strategy has attracted detractors, its impact on the company’s share price justifies the risks. MicroStrategy has outperformed nearly every large US company over the past four-plus years.”
