In the fiercely competitive world of tech investing, one company is defying the odds and catching the eye of investors by leveraging the power of Bitcoin. MicroStrategy, led by the ever-optimistic Bitcoin advocate Michael Saylor, has seen its stock skyrocket by an impressive 246% this year alone, with shares trading around $492.
The secret sauce? MicroStrategy’s hefty Bitcoin holdings, which, like the company’s stock, have also experienced a significant surge, reaching new heights above $37,200 and climbing 122% year-to-date.
Saylor sees Bitcoin as the great equalizer, enabling his firm to stand toe-to-toe with the titans of tech—the “Magnificent Seven,” which include behemoths like Apple and Microsoft. In a landscape where government-induced inflation and technology-driven deflation are squeezing companies out of contention, Saylor’s strategy is bold but clear: if you can’t outgrow them, outsmart them.
In a recent interview, Saylor explained the impetus behind their pivotal decision in August 2020: as a mid-sized software company, outpacing the likes of Google and Apple in growth was a tall order. The solution? Find a “high-growth digital monopoly”—and Bitcoin fits the bill perfectly.
Describing Bitcoin as a dominant digital network with explosive growth potential, MicroStrategy’s investment has paid dividends, literally. Not only has Bitcoin’s value soared, but it has also provided a dynamic asset to bolster MicroStrategy’s balance sheet and corporate growth strategy.
Saylor’s bullish stance on Bitcoin is undeterred by its already sharp rally in 2023. He anticipates an even steeper ascent following the regulatory green light for Bitcoin spot ETFs, which Bloomberg Intelligence strategists believe has a 90% chance of approval by January 2024.
He outlines a future where post-Bitcoin halving in April—where the reward for mining Bitcoin transactions is halved—the digital currency’s supply will drop, while demand is set to double, especially with the advent of ETFs. This, in Saylor’s view, is a recipe for price increases, as the market adjusts to the new supply-demand dynamics.
With predictions flying about Bitcoin potentially breaching the $100,000 mark post-halving, Saylor’s outlook for the digital asset class is not just optimistic, but positively “auspicious” for the coming year.
For the savvy investor or entrepreneur, MicroStrategy’s journey is a masterclass in strategic investment and market positioning. In a world where digital assets are becoming ever more mainstream, keeping an eye on innovative approaches like Saylor’s could very well signal new opportunities on the horizon.