Since Microstrategy and Michal Saylor adopted the Bitcoin Standard in September 2020, BTC and MSTR prices have risen more than any other asset class.
Equity indices, Commodity and bonds have had smaller returns than digital gold and the stock of the company with the most Bitcoin on its balance sheet in the world.
Will this trend continue in the coming years?
Full details below.
Summary
Bitcoin and Microstrategy (MSTR) are the best performing assets of the past 3 years
Since September 2020, the rise in prices for Bitcoin and Microstrategy (MSTR) stocks has been larger than the growth in stock indices, bonds, and commodities.
As a result, the two assets earned the distinction of best-performing assets over the past 3 years with returns of 145% for the cryptocurrency and 254% for the company’s stock.
This achievement was made possible by the growth in the markets that we have witnessed since the beginning of the year.
Specifically, since 1 January 2023, Bitcoin has risen 75.48% while Microstrategy has pumped 168.87%.
Not even the boost of the US stock market and the recent ATH of tech stocks allowed the Nasdaq and S&P500 to reach those numbers, which since the beginning of the year have registered +34.40% and +17.72% respectively.
The trend of the MSTR stock likely follows BTC’s price action, considering the fact that Microstrategy is the world’s leading company in terms of satoshi held within its balance sheet.
Specifically, Michael Saylor, founder of the Tyson Corners-based technology company, can count a whopping 152,800 Bitcoin, equivalent to $4.57 billion and about 0.8% of the cryptocurrency supply.
The strategy adopted by Microstrategy is to buy coins using a DCA plan, without focusing too much on the current price but thinking more with a view to future appreciation.
Despite the excellent results achieved, Saylor’s investment is currently in the negative, with a loss of 2.43% or about $111 million.
On 31 July 2023, Microstrategy’s accumulation plan continued with a purchase of 467 BTC at a price of $30,835 for a total value of $14.4 million
Will the trend continue in the coming years? Focus on the price of MSTR
Many are wondering whether the trend of the past 3 years will continue in the future with Bitcoin and Microstrategy outperforming all existing asset classes in the world.
Although no one can predict the future and make such assessments, we can still confirm analysts’ optimism for both the cryptocurrency and the stock.
The upcoming halving of the cryptocurrency or the approval of a spot ETF by the US SEC could trigger a new bull market with price targets hovering around $100,000.
Microstrategy will obviously benefit from this potential situation, especially if it continues to include BTC in its portfolio.
In any case, Bitcoin’s future may be “safer” than that of MSTR, which reflects its value solely on the basis of cryptocurrency movements but at the same time has to deal with the mechanisms typical of traditional financial markets.
A whole range of risks related to the custody of the cryptocurrency must be added to investors’ expectations of corporate earnings, which definitely makes the product decidedly risky.
Precisely in reference to the MSTR stock, it is worth noting that a few days ago Michael Saylor announced his willingness to liquidate $750 million of corporate equity in order to be able to buy more Bitcoin to put on his balance sheet.
Investors do not seem to have taken the news very well, leading to a 6.36% drop in the stock price on the day of the news, followed by a follow down of the offering the next day with -4.28%.
MSTR is still far from its all-time high touched in March 2000 at $3300. In February 2021, the stock had reached a top at $1315 after an incredible upward price run, which then culminated in the inexorable advent of the bear market.
MSTR currently trades at $389, with price action trending downward in the coming days. The decline over the past week seems to be trying to reverse the bullish trend that began at the beginning of the year, with the RSI indicator marking a strong top in mid-July.
Microstrategy’s market capitalization is $5 billion, significantly smaller than that of digital gold, which currently stands at $566 billion.
