MicroStrategy’s CEO Michael Saylor is riding high after his company’s stock price surged 513% in the past year. Despite Bitcoin’s 117% gain, MicroStrategy’s market cap is more than double its Bitcoin holdings, worth $37.6 billion.
Saylor attributes this success to “leveraging” Bitcoin, meaning buying and holding onto it while using borrowed funds to amplify returns. The company has raised $42 billion from stock and bond offerings over three years to fuel its buying spree.
However, not everyone shares Saylor’s confidence. Citron Research recently expressed skepticism about MicroStrategy’s stock, saying it was “overheated”. But Saylor remains undeterred, citing his past experience with the dot-com bust as proof that taking risks can lead to big rewards.
The company’s aggressive approach has paid off so far, but it’s unclear how long this trend will last. One thing is certain: MicroStrategy’s bet on Bitcoin has become an integral part of its strategy.
Source: https://fortune.com/crypto/2024/12/01/bitcoin-vs-microstrategy-mstr-stock-outperformance-btc-michael-saylor