Bitcoin's Influence on MicroStrategy's Remarkable 250% Stock Surge

As the stock market sees persistent volatility and technological juggernauts command a significant share of investor attention, one software company, MicroStrategy Incorporated MSTR, has surged an impressive 250% this year, with its stock climbing 6% alone last Thursday. The founder and executive chairman of MicroStrategy, Michael Saylor, attributes much of this success to his firm's significant investment in bitcoin CRYPTO:BTC.

Competing with Tech Giants Through Bitcoin Exposure

By acquiring and holding an extensive portfolio of bitcoin, MicroStrategy has positioned itself to compete with major tech entities, sometimes referred to as the 'Magnificent 7,' which includes companies like Microsoft Corporation MSFT and Alphabet Inc. GOOG. Saylor has been vocal about the difficulties faced by 'main street' companies in keeping pace with these behemoths, which often see consistent, substantial growth. The magnified presence of these giants leaves little breathing room for other companies aiming for similar success.

Why Bitcoin Investment Was the Strategic Move

Michael Saylor's strategic move to invest in bitcoin was born out of necessity, noting that as a mid-sized software company, MicroStrategy couldn't outpace the growth of the likes of MSFT or GOOG. Saylor highlighted bitcoin's exceptional year-on-year growth rate and branded it as a 'high-growth digital monopoly.'

Since redirecting their investment focus toward bitcoin back in August 2020, MicroStrategy has seen their balance sheet and stock price swell, seemingly validating Saylor's investment philosophy. This approach harnesses the momentum of bitcoin's growth, which has risen 122% year-to-date, even hitting record highs throughout the year.

The Future of Bitcoin and MicroStrategy

Looking to the future, Saylor predicts a continued rise in bitcoin's value, especially with anticipated regulatory approval of bitcoin spot ETFs and the upcoming 2024 bitcoin halving event. He suggests these factors will lead to a constrained supply coupled with a doubling in demand, inevitably driving up the price of bitcoin to adjust the market.

Several other voices in the digital asset sector share Saylor's bullish outlook, with predictions of bitcoin prices soaring beyond $100,000 following the halving. Historically, bitcoin has consistently reached new highs in the months following past halving events. Saylor deems the upcoming 12 months quite favorable for the asset class.

MicroStrategy, Bitcoin, Stocks