How MicroStrategy Investors Have Profited From Saylor’s Billion Dollar Bitcoin Bet
Michael Saylor’s bet on the flagship cryptocurrency, Bitcoin, hasn’t only benefitted his company as the company’s investors are also much richer thanks to the co-founder’s big bet. These investors happen to be some of the biggest gainers in the financial market based on MicroStrategy’s success this year.
MicroStrategy Investors See Over 300% Gain
A recent report by CNBC highlighted how MicroStrategy investors have seen over 300% gain thanks to the company’s Bitcoin bet. These gains have come from the exponential increase in the software company’s stocks. The company’s stocks are up by 326% year-to-date (YTD), according to data from MarketWatch.
This success has been credited to MicroStrategy’s ‘Bitcoin Strategy’, which has been spearheaded by its co-founder Michael Saylor. MicroStrategy ranks up there among the biggest gainers this year and the company has even topped major companies like Meta and Nvidia.
The gain of over 300% enjoyed by MicroStrategy’s investors is even more impressive when comparing it with how much Bitcoin itself has made for its investors this year. The flagship cryptocurrency is up about 157% YTD, with this figure also representing the gain made by Bitcoin investors so far this year.
Much credit has to be given to MicroStrategy’s co-founder, Michael Saylor, who has continued to believe in the pioneer cryptocurrency even during the peak of the bear market. This Bitcoin strategy, which was implemented in 2020 when the company began to accumulate BTC, has evidently brought immense success to the company.
The company has gone from being just a software company to one that provides an avenue for investors to gain exposure to Bitcoin. Many, especially institutional investors, who cannot directly invest in Bitcoin continue to see the company’s stocks as an alternative way to invest in the flagship cryptocurrency.
BTC begins another recovery | Source: BTCUSD on Tradingview.com
Will Spot Bitcoin ETFs Affect MicroStategy’s Bitcoin Strategy?
Spot Bitcoin ETFs could potentially be approved as early as January and this could be a concern for MicroStrategy, considering that some of its investors who invested in its stocks just for Bitcoin exposure could move their capital to these funds. On the other hand, this development could also be beneficial for the software company.
Approval of Spot Bitcoin ETFs is projected to spark a significant increase in Bitcoin’s price, which also means more profit for Saylor and his company. The company also has one over these Spot ETFs as it can put its BTC holdings to work. As such, these ETFs are unlikely to have so much impact on MicroStrategy’s future success.
Saylor himself had previously commented on this, as he stated that approval of these Spot Bitcoin ETFs has no bearing on their Bitcoin strategy. He further said that his company has a unique Bitcoin offering, which these ETFs cannot emulate. The MicroStrategy co-founder also recently highlighted these Spot BTC ETFs as being bullish for Bitcoin going into 2024.
Featured image from MicroStrategy, chart from Tradingview.com
