Here’s How MSTR’s Stock Performance Has Accelerated Due to Bitcoin Adoption BTC Miners To Follow Suit?
Since Microstrategy began adopting Bitcoin in 2020, MSTR stock has outperformed all other companies on the S&P 500, with its stock growth impressive. Former CEO and founder Michael Saylor. The move has paid off so far, as reflected in MSTR's stock performance since then. In a recent X post, Saylor highlighted MSTR's performance since accepting Bitcoin.
The higher the MSTR, the higher the institutional demand
What's even more surprising is that MSTR's stock price has beaten Bitcoin over the past four years. The company's stock has risen more than 1,000% since accepting bitcoin. Meanwhile, BTC and S&P 500 have increased by 425% and 70% respectively.
Because of this Bitcoin strategy, many institutional investors see the company as a way to gain exposure to the mainstream crypto, which is how MSTR stock has seen significant growth. Despite predictions that MicroStrategy could lose its Bitcoin edge after the launch of Bitcoin ETFs, on the contrary, MSTR recorded a year-to-date (YTD) gain of more than 120%.
In particular, microstrategy Bitcoin adoption continues to grow. The company recently bought 7,420 BTC ($458.2 million). Prior to this purchase, he bought $1.11 billion worth of bitcoins, marking his largest purchase to date. It currently holds 252,220 BTC at an average price of $39,266 per Bitcoin. Incredibly, the company accounts for 1.2 percent of the total supply of BTC.
Are bitcoin mining companies following suit?
After Saylor's micro strategy advised large corporations to buy bitcoins on the open market, surprisingly, one of the largest bitcoin mining companies, Marathon Digital ( MARA ), adopted a similar strategy. And now another miner is following the same path.
Cathedra Bitcoin (CBT), a mining startup, is changing its business model to develop data centers and use the profits from this business to buy bitcoins instead of mining. He cited unpredictable profit margins as the reason for the change and pointed out that the company's main goal is to accumulate bitcoins for shareholders.
Saylor's bullish forecast
Michael Saylor, CEO of MicroStrategy, shared his bullish forecast for Bitcoin in the wake of the SEC's approval of BTC ETFs options. He shared that approval for IBIT options will accelerate institutional adoption of Bitcoin. On Friday, the US Securities and Exchange Commission approved listing and options for BlackRock's spot Bitcoin ETF on the Nasdaq. Saylor's prediction was posted in response to a thread by Bloomberg analyst Eric Balchunas.
Balchunas echoed the sentiment, noting that options trading “attracts more liquidity, which in turn attracts more big fish.” However, Balchunas emphasized that this will be followed by other regulatory decisions and that the exact list will take more time.
Binance CEO Richard Teng recently stated that the institutional adoption witnessed so far is only the tip of the iceberg and that he expects many institutional investors to allocate to crypto soon.
