MicroStrategy outperforms leading conventional assets


Since embracing the Bitcoin standard, MicroStrategy (MSTR) has outperformed leading conventional assets.

The latest market bull market in Bitcoin (BTC) was motivated by institutional investors that accumulated the assets at historical prices. MicroStrategy (NASDAQ: MSTR), a US-based business intelligence corporation, is one of the major institutions that has invested in BTC under the Bitcoin standard.

After beginning to acquire the flagship cryptocurrency, the company’s stock has outperformed other traditional investment products. After MSTR embraced the Bitcoin standard on August 10, 2020, the stock has increased by 69.31% as of October 14.

The US dollar had the second-best performance over the time, at 20.70%, followed by the S&P 500 index, at 6.60%. MicroStrategy is trailed by the NASDAQ index (-5.89%), gold (-18.05%), and silver (-36.95%).


MicroStrategy suffers losses following the adoption of Bitcoin.

Despite its stock performance versus Bitcoin, MicroStrategy has emerged as one of the largest sufferers of the latest crypto collapse. MSTR reported $122.1 million in quarterly sales in Q2 2002, compared to $126 million expected, and a $918.1 million loss.

The Bitcoin holdings were responsible for $917.8 million of the losses. MicroStrategy’s Bitcoin haul was worth about $3 billion at the time, compared to the acquisition price of $3.975 billion.

Furthermore, following the losses, the company’s CEO, Michael Saylor, resigned after being key in assisting the company’s Bitcoin accumulation.

Surprisingly, the corporation has continued to buy while prices are low, with the most recent Bitcoin acquisition occurring between August and September. The corporation acquired an additional 301 Bitcoins at an average price of $19,851 per coin, totaling over $6 million.


Bitcoin and stock correlation

However, it is worth noting that Bitcoin has historically moved in tandem with stocks when the economy faces rising inflation and interest rate rises. The situation, on the other hand, has made assets such as the US dollar more prominent, with the currency climbing to historical highs while hobbling other world currencies.

For example, the strong performance of the dollar versus global fiat currencies prompted investors to turn to Bitcoin as a hedge. At the same time, the migration to Bitcoin provided investors with an opportunity to benefit from arbitrage.

Meanwhile, Bitcoin is seeking to break beyond the $20,000 barrier. The asset was trading for $19,500 at the time of publication.