Michael Saylor’s MicroStrategy is making headlines once again, with its stock trading at a 25-year high. Recent data from TradingView reveals that MicroStrategy (MSTR) reached $235.89 in Thursday’s session, marking an over 7% increase on October 25th. This rise continues a six-week rally, preceding the company’s impending Q3 earnings report.
This week’s stock triumph reflects the company’s consistent growth trajectory over the past few years. MicroStrategy has notably surpassed most of its peers in the S&P 500 index, even outpacing tech giant Microsoft’s growth since 1999. Analysts are bullish on the stock, setting a target price of $245 in the near future.
MicroStrategy, headquartered in Virginia, holds the title of being the world’s largest corporate holder of Bitcoin, with a staggering 252,222 BTC. With Bitcoin currently priced at $67,392, the company’s holdings are valued at over $17 billion.
The company initially gained prominence by developing software for decision-making by analyzing external and internal data, competing with industry players like IBM Cognos, Oracle Corporation’s BI Platform, and SAP AG Business Objects. However, in August 2020, MicroStrategy pivoted its business model to focus on Bitcoin. This shift has led to the company raising $4.25 billion from equity offerings, forming the financial backbone for its extensive Bitcoin accumulation.
MicroStrategy’s aggressive Bitcoin strategy, championed by Saylor, has been a double-edged sword. The company aims to purchase Bitcoin whenever possible, and while this approach has driven notable success, it has also attracted some criticism. To fund its Bitcoin acquisitions, MicroStrategy expanded its convertible note offerings, most of which won’t mature until 2032. Critics argue that this strategy leaves the company vulnerable to the inherent volatility of cryptocurrency markets.
Despite the valid concerns, Michael Saylor has remained resolute, doubling down on Bitcoin investments. Market observers like Mark Palmer highlight that since adopting the Bitcoin strategy, MicroStrategy’s stock has yielded a 17.8% return. Analysts now set their sights on a $245 target for the stock, which has already surged 1,600% in the last four years.
Michael Saylor’s unwavering commitment to Bitcoin remains evident. In a recent social media post, Saylor hinted at further ambitions for MicroStrategy, even extending a playful yet serious proposition to Microsoft’s CEO, Satya Nadella, underscoring his relentless vision and passion for Bitcoin.