MicroStrategy’s Bitcoin Strategy Yields $17 Billion in Unrealized Profits

MicroStrategy’s (MSTR) Bitcoin buying spree has generated more than $17 billion in unrealized profits, according to data from MSTR Tracker. Since 2020, the company has spent over $23 billion acquiring BTC as part of founder Michael Saylor’s unconventional corporate treasury strategy. This strategy has paid off, with Bitcoin surpassing $100,000 per coin for the first time on Dec. 4. The company’s BTC treasury is now valued at over $40 billion, according to MSTR Tracker. Top-Performing Stock in 2024 MicroStrategy’s stock performance has outpaced Bitcoin itself, rising more than 475% year-to-date. This makes it one of the top-performing stocks in the S&P 500, based on data from Google Finance and Slickcharts. As of Dec. 5, MSTR has a market capitalization of approximately $92 billion, more than twice the value of its Bitcoin holdings. Benchmark fintech analyst Mark Palmer raised his price target for MSTR shares from $450 to $650, citing the company’s aggressive buying strategy. Currently, MSTR trades at about $394 per share, according to Google Finance. Expanding Bitcoin Holdings During its Aug. 1 earnings call, MicroStrategy introduced the concept of “Bitcoin yield,” a metric that tracks BTC holdings relative to outstanding shares. The company committed to a massive three-year BTC buying spree, dubbed the “21/21 Plan,” aiming to raise $21 billion each in equity and debt to fund the effort. Despite criticism, analysts note that MicroStrategy’s bold strategy has delivered exceptional returns for its shareholders. “The dramatic impact on the company’s share price has provided ample justification, as its stock has outperformed almost every large company in the US during the past four-plus years,” said Palmer. With 400,000 BTC as of Dec. 5, MicroStrategy’s Bitcoin-centric approach continues to attract attention and drive significant gains.