Just over a year ago, Bitcoin was still recovering from one of the worst price drops in recent times. At the same time, the first cryptocurrency was on the verge of entering a new age of acceptance that would push it to new all-time highs within the next few months.
From an annual low in 2020 of about $ 3,700 per BTC to $ 10,000 in September 2020 – to finally $ 52,640 at the time of this article. Bitcoin, with a gain of 478% since the middle of last year, has proven why the coin is one of the best performing assets of the decade.
Approximately at this time, from March to June 2020, the software company MicroStrategy bought its first coins. The company’s CEO, Michael Saylor, celebrated this decision in a recent post on Twitter.
According to Saylor, the world economy is trending towards inflation due to the monetary policy of the main central banks. Hence his decision to invest a large part of the company’s value in a store of value fund.
When deciding whether it should be gold or Bitcoin, the managing director chose the latter because of its characteristics. Saylor is a well-known Bitcoin bull – and so far his bet has paid off too.
As the chart below shows, if MicroStrategy had invested in gold instead of Bitcoin, it would have lost 80% of its value within a year if the initial investment of more than $ 2 billion had gone into gold. In the last 30 days, it would have lost 21% of its value.
Data from BitcoinTreasuries.org show: MicroStrategy owns over 100,000 BTC or 0.5% of the total supply. As seen above: the investment has experienced an increase in value of 376.34% in one year.
MicroStrategy Outperforms Gold Due to its Bitcoin Investment
Other data provided by Ecoinometrics suggests a correlation between MicroStrategy (MSRT) stock performance and Bitcoin price. Since the company launched its BTC treasury program, its shares have risen by 428%.
Sep. 03, 2021
– ecoinometrics (@ecoinometrics) September 6, 2021
Bitcoin and MicroStrategy have managed to outperform two of the major stock indices, the NASDAQ and the SP500. The former has a profit of 68,3%, while the latter has a profit of 54,8% since the software company announced its BTC treasury program.
MicroStrategy has become a BTC price proxy for many companies, banks and hedge funds that want to engage in cryptocurrency in a legal way. Giants such as BlackRock, Capital Group, Morgan Stanley, The Vanguard Group and others have massive positions in the company.
MicroStrategy and its CEO were met with distrust by many in the crypto community. Many expect the company to throw its BTC into the market when the opportunity arises. To these statements, Saylor has responded that he plans to keep Bitcoin “forever.”
Undoubtedly, the company was able to start a movement that has led BTC to new highs in terms of price and acceptance. Tomorrow, El Salvador will introduce the Bitcoin standard. The country is officially in the list of Bitcoin holders-right after MicroStrategy, Tesla, Square and others.
Added Nation State
El Salvador 🇸 🇻 @ 200 # Bitcoin
— BitcoinTreasuries.NET (@BTCtreasuries) September 6, 2021
Text credit: Bitcoinist
Top Brokers for buying and trading cryptocurrencies
- Buy Real Bitcoin or Bitcoin CFDs
- Wallet and Exchange in one
- 14 + Cryptos
- Excellent Trading Tools
- Large knowledge and training database
- Very good spreads
Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.