MicroStrategy, led by CEO Michael Saylor, has been making waves in the stock market with its remarkable growth over the past few years. Since 2020, the company’s stock has surged an impressive 1,540%, outperforming all of the S&P 500 companies in that time frame. This significant increase in value has been attributed to MicroStrategy’s strategic decision to adopt a Bitcoin accumulation strategy.
The timing of MicroStrategy’s foray into Bitcoin couldn’t have been better, as the leading cryptocurrency has seen a surge in popularity and value in recent years. The firm has steadily increased its holdings in Bitcoin, which has contributed to its overall value on the stock market. This move has paid off handsomely for MicroStrategy, with its stock outperforming every other company in the S&P 500 since August 2020.
Bitcoin’s success in 2024 has further bolstered MicroStrategy’s position in the market. The cryptocurrency became the first crypto-based ETF to receive regulatory approval in the United States, and its price reached an all-time high of $73,000 in just three months. With October shaping up to be a favorable month for Bitcoin, the token could potentially challenge its previous high by the end of the year.
Despite its impressive performance, MicroStrategy is still unlikely to be added to the S&P 500 index due to its lack of profitability. Companies seeking inclusion in the index are required to have been profitable in the most recent year and quarter. However, if MicroStrategy can achieve profitability, it may find itself on the prestigious listing in the future.
Overall, MicroStrategy’s success in the stock market can be attributed to its strategic adoption of Bitcoin and its strong belief in the cryptocurrency. As the company continues to navigate the ever-changing market landscape, investors will be watching closely to see if it can sustain its impressive growth trajectory.