MicroStrategy outshines U.S. tech giants: Is Bitcoin the key?

• MicroStrategy outperformed top S&P 500 stocks, showcasing significant growth.
• The company continues its “buy the dip” approach, attracting interest from other firms.

In the wake of Bitcoin [BTC]‘s recent volatility, MicroStrategy, known for its substantial BTC holdings, has captured attention by reportedly surpassing the performance of leading S&P 500 stocks.

MicroStrategy’s stellar performance

Highlighted in a recent post by House of Chimera on the 24th of September, the company has emerged as a noteworthy player in the market, outshining tech giants such as Apple Inc., Microsoft Corp., NVIDIA Corp., and Amazon.com Inc.

“MicroStrategy’s 1,071% growth driven by its Bitcoin strategy surpasses leading S&P 500 companies like Nvidia (939%) and Arista Networks (591%).”

The post further added, 

“This illustrates the outsized returns possible through Bitcoin exposure compared to traditional equity growth strategies.” 

Not the first time!

This isn’t the first time when MicroStrategy’s stocks made waves in the market; back in July, it notably outperformed renowned tech companies like Nvidia, Tesla, and Microsoft.

Recent comparisons reveal that MicroStrategy has continued to demonstrate strength, experiencing a 2.09% increase in the past month, while BTC faced a slight decline of 0.65% during the same timeframe.

Source: Google Finance

This contrasting performance highlighted MicroStrategy’s resilience and growing prominence as an investment option, especially in a climate where BTC has been grappling with volatility.

Remarking on the same, an X user – Mitchell Weijerman said, 

“MicroStrategy’s Bitcoin strategy is proving that traditional equity growth can’t match the potential of crypto.”

Michael Saylor weighs in

MicroStrategy’s founder and chairman recently commented on the company’s impressive performance, emphasizing its ability to outperform even the most prominent players in the tech sector.

He highlighted that this trend reflects not only MicroStrategy’s strategic positioning in the market but also its resilience amid the fluctuating cryptocurrency landscape.

Source: Michael Saylor/X

What’s the firm’s Bitcoin strategy?

Upon closer examination, it appears that MicroStrategy remained largely unaffected by Bitcoin’s recent price fluctuations, instead opting to implement a “buy the dip” strategy.

As BTC was struggling to break past the $60,000 threshold, the Nasdaq-listed company announced plans to offer $700 million in convertible senior notes due in 2028.

Additionally, in its second-quarter report, MicroStrategy revealed that it now holds an impressive 226,500 Bitcoins.

Following MicroStrategy’s aggressive BTC acquisition strategy, other companies are starting to emulate this approach.

For instance, Metaplanet, a publicly traded investment and consulting firm based in Japan, recently acquired an additional 38.46 BTC for $2.1 million, which brings its total Bitcoin holdings to nearly 400 BTC, valued at around $23 million.