In 4 years, microstrategy bitcoin gambling has defeated Warren Buffett’s warning
MicroStrategy purchased the first Bitcoin (BTC) deposit on August 10, 2020, becoming the first publicly traded company to adopt the cryptocurrency as its primary treasury asset. Four years later, the bold move has turned into a defining strategy for a company that has outlasted even Warren Buffett's Berkshire Hathaway returns.
Microstrategy in Bitcoin profit 5.38B
In the year On August 10, 2024, MicroStrategy had a reserve of 226,500 BTC worth $13.771 billion, earning an average of around $37,000. With Bitcoin currently trading at roughly $60,500, MicroStrategy is now sitting on an undisclosed profit of around $5.39 billion.
Despite the huge profits, Michael Saylor's company has maintained its Bitcoin holdings, choosing not to liquidate any of its accumulated assets. Bitcoin has expressed its desire to continue its accumulation, further evidenced by its recent purchase on August 1st.
Michael Sayler is beating the legendary Warren Buffett.
Up nearly 1,000% since August 2020, MicroStrategy's MSTR stock price has responded strongly to Bitcoin purchases. By comparison, this is 1.5 times the return of BTC and 16.25 times the return of the S&P 500 (SPX) index. At the same time.
Interestingly, Warren Buffett's Berkshire Hathaway Class A stock, BRK.A, MicroStrategy's first bitcoin purchase, has underperformed MSTR. BRK.A gained only 104.75% during this period, and Buffett's persistent negative stance on Bitcoin prevented Berkshire from exploring crypto investments.
Related: Warren Buffett's Berkshire Hathaway Has Crashed 99% on Bitcoin Since 2015
In the year In 2018, Buffett called Bitcoin “Rat Poison Square”. His close friend, the late Charlie Munger, predicted in 2021 that the price of BTC would fall to zero.
However, Bitcoin and MSTR have outperformed Buffett's top stock holdings in recent years, including Apple, American Express and Bank of America.
However, some traders have expressed their desire to short MSTR stock, as investment firm Kerrisdale Capital is trading at an “unwarranted premium” to Bitcoin.
“The software business is worth a billion, maybe a billion. [point] Five, somewhere in between – not worth much,” Sahm Adrangi, chief investment officer at Kerrisdale Capital, told Cointelegraph.
“Bitcoin prices must rise to increase the value of the company. If they fall, the value of the company will decrease. The company must trade at the price of Bitcoin. Our argument is ‘microstrategy go short, go long Bitcoin,'” he said.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
