Bitcoin
MicroStrategy is up nearly 1,100% since pivoting from Bitcoin in 2020 By Investing.com
According to a note from Canaccord, enterprise software company MicroStrategy has seen its shares soar nearly 1,100% since it embarked on a bold strategy to adopt as its main treasury reserve asset in August 2020.
Canaccord said this strategic pivot, led by CEO Michael Saylor, has been a significant driver of the company’s remarkable stock performance.
They note that MicroStrategy’s transformation into a Bitcoin-centric entity has been marked by several important milestones.
The Financial Accounting Standards Board (FASB) adopted fair value accounting treatment for Bitcoin held on corporate balance sheets late last year, increasing the transparency and accuracy of valuing Bitcoin holdings.
Additionally, the approval of spot Bitcoin ETFs in the US has facilitated Bitcoin’s evolution into an institutional asset class, further validating MicroStrategy’s strategy.
Canaccord believes that these two important milestones in the evolution of bitcoin could have been catalysts in life sciences company Semler Scientific’s (NASDAQ:) recent decision to adopt Bitcoin as its corporate treasury currency.
Canaccord adds that as MicroStrategy’s market capitalization has increased from approximately $1.4 billion at the start of its Bitcoin journey, its equity premium relative to its Bitcoin holdings has remained resilient.
“Furthermore, MSTR’s stock performance since adopting its bitcoin strategy in August 2020 (up nearly 1,100%) couldn’t have hurt either,” they wrote.
MicroStrategy’s success highlights Bitcoin’s potential to generate shareholder value in maturing companies amid high inflation and stock valuation pressures, as highlighted by Canaccord.