According to CEO Michael Saylor, Microstrategy (MSTR) has “outperformed all asset classes and big tech stocks” since the company adopted a bitcoin strategy and began accumulating cryptocurrency in its corporate treasury. The pro-bitcoin executive will step down as CEO of Microstrategy and take on the role of the company’s executive chairman to focus on bitcoin.
Performance of the micro strategy since the adoption of the bitcoin strategy
Software developer Microstrategy Inc. (Nasdaq: MSTR), a Nasdaq-listed company, released its second-quarter financial results on Tuesday. CEO Michael Saylor tweeted on Wednesday:
Since adopting the bitcoin strategy, MSTR has outperformed all asset classes and major tech stocks.
He added that the price of bitcoin has risen 94% over this period, while the S&P 500 is up 23% and the Nasdaq is up 13%. In contrast, gold, bonds and silver fell 13%, 14% and 29% respectively. Microstrategy adopted a bitcoin strategy in the third quarter of 2020.
He explained in another tweet:
Since Microstrategy has adopted a bitcoin strategy, its corporate value has grown by 730% (+$5 billion) and MSTR has grown by 123%.
Comparing the performance of Microstrategy shares to those of large technology companies since the adoption of the bitcoin strategy, Saylor noted that MSTR has outperformed Alphabet/Google (GOOG), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), owner of Facebook Meta. (META) and Netflix (NFLX).
Microstrategy has two corporate strategies: Business Intelligence and Bitcoin. The bitcoin strategy is to “acquire and hold bitcoins for the long term; buy bitcoins through excess cash flow, as well as debt and equity transactions,” the company said in a presentation of the company’s second-quarter financial results.
The software company currently owns about 129,699 BTC, acquired at an average purchase price of $30,664 per bitcoin, excluding fees and expenses, for a total value of $4 billion, the company said in a statement. Microstrategy reported a $917.8M Bitcoin impairment loss in the second quarter, which represents a non-cash expense due to BTC price volatility.
Saylor steps down as CEO to focus on bitcoin strategy
Microstrategy also announced on Tuesday that Saylor will step down as the company’s CEO and take over as executive chairman effective August 8. The new CEO will be Fong Le, the company’s current CFO.
Saylor, who has served as the company’s CEO since 1989, will remain chairman and chief executive of the company. He detailed:
As Executive Chairman, I will be able to focus more on our Bitcoin acquisition strategy and related Bitcoin advocacy initiatives.
“I believe that separating the roles of chairman and CEO will allow us to better execute our two corporate strategies of acquiring and holding bitcoin and growing our enterprise analytics software business,” commented the outgoing CEO.
“In my next job, I intend to focus more on bitcoin,” he tweeted on Wednesday.
What do you think about the performance of Microstrategy since adopting the bitcoin strategy? Let us know in the comments below.
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