MicroStrategy earns $500M daily as its stock surges nearly 100%
MicroStrategy at the height of its popularity
MicroStrategy is reportedly earning around $500 million daily as Bitcoin approaches its historic $100,000 milestone. In an interview with CNBC, the company’s co-founder Michael Saylor revealed that over the past two weeks, the company's crypto assets have appreciated by $5.4 billion.
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MicroStrategy's stock has been soaring, gaining 97% in the past month compared to Bitcoin's 47% growth over the same period. Year-to-date, the company’s shares have skyrocketed by 515%, while Bitcoin has risen by 122%. For comparison, Nvidia, a leader in artificial intelligence, has seen its stock grow by nearly 195% during this time.
"We may very well be the most profitable and fastest-growing company in the U.S. Few companies make $500 million a day," Saylor stated.
Why MicroStrategy stock is surging
The surge in MicroStrategy's stock price is driven not only by Bitcoin’s rising value but also by the company’s strategic approach. Its shares trade at a 256% premium to the net value of its Bitcoin holdings, reflecting its aggressive Bitcoin acquisition strategy. Additionally, regulatory limitations on Bitcoin ETF investments have pushed investors toward MicroStrategy as a way to gain exposure to Bitcoin.
The company’s success is also linked to its effective use of leverage, amplifying the impact of Bitcoin's price growth on its market capitalization.
Investors are likely to accelerate their MicroStrategy stock purchases once Bitcoin crosses the $100,000 threshold. The company has established itself as a unique vehicle for indirect Bitcoin ownership on the stock market.
Meanwhile, MicroStrategy has joined the ranks of the top 100 publicly traded companies in the U.S., landing in 97th place.
