MicroStrategy, initially established almost 35 years ago, primarily operated as a relatively obscure software company focused on business intelligence. However, in 2023, the company’s stock has experienced a remarkable surge of 337%, positioning it amongst the leading gainers in the U.S. among companies valued at $5 billion or more. This surge surpasses the notable rallies of Nvidia, at 234%, and Meta, at 194%.
What sets MicroStrategy apart from its tech counterparts is its heavy reliance on bitcoin for its investor appeal. Beginning its foray into the cryptocurrency realm in mid-2020, the company has amassed approximately 174,530 bitcoins, which currently hold a value of about $7.65 billion as of late Friday.
Remarkably, the stock has exhibited such a profound affinity with the narrative that its gains this year have even outpaced the growth of bitcoin itself.
Joseph Vafi, an analyst at Canaccord Genuity who advocates for purchasing MicroStrategy stock, affirms that the primary driving force behind this success is, undoubtedly, bitcoin. While the company continues to excel in its sector, maintaining efficient software leadership and displaying overall positive performance, the focus on bitcoin provides an additional edge to their investor appeal.
Source (CNBC)
