MSTR delivers triple-digit returns in a year, driven by Saylor’s Bitcoin treasury strategy, holding 279,330 BTC worth $40.6B.
MSTR has experienced an extraordinary 126% growth in the past year, surpassing the returns of Tesla and other major technology companies. Even though the stock price is closely linked to Bitcoin, there are concerns that a significant decline in the price of BTC could negatively impact the holders of Strategy stock.
MSTR surpasses Tesla, NVIDIA, Gold, and Meta
The price performance of prominent technology stocks has been surpassed by Strategy (MSTR) shares, which have experienced a triple-digit increase on the one-year charts. Market analysts’ expectations have been defied by the 126% increase in MSTR over the course of a year, as indicated by an X post by Michael Saylor.
To conclude the week with a nearly 2% increase, the stock currently trades at $374.47. Nevertheless, the true value of MSTR is evident in the 12-month chart, which exhibits a high of $542.99 and a low of $102.40 throughout the year.
Michael Saylor is overjoyed with the triple-digit percentage gains that MSTR has provided to its holders despite the wild fluctuations. In the past year, MSTR’s gains exceeded those of Tesla (TSLA), Bitcoin (BTC), and Meta (META), which returned 66%, 48%, and 41%, respectively, according to the data provided.
In the past year, investors experienced gains of 17% and 15% from Nvidia and Amazon, respectively, while the Invesco QQQ Trust, which is heavily invested in technology, generated a conservative 14%. Microsoft (MSFT) and Apple (AAPL) generated a meager 11% and 5% return, respectively.
Michael Saylor suggests that the cause for MSTR’s exceptional performance is the accumulation of Bitcoin by Strategy. Strategy has recently acquired 705 BTC, increasing its Bitcoin holdings to 580,955 BTC.
“Strategy is fully torqued Bitcoin,” wrote Saylor.
Stock prices may be adversely affected by Michael Saylor’s Bitcoin rush
The stock’s robust year-long performance is correlated with the price movement of Bitcoin, as it has mirrored the ebb and flow of BTC. Nevertheless, a decoupling is in the process of forming, as MSTR has failed to rally following Bitcoin’s all-time high.
Subsequent Bitcoin purchases have not influenced the MSTR price in the past. A fortnight ago, Strategy acquired 4,020 BTC for $427 million; however, MSTR experienced a 7% decline.
Michael Saylor and Strategy have introduced STRD, a new junior preferred stock offering that will be used to fund their Bitcoin acquisitions. Following the announcement, MSTR experienced a rebound; however, investors remain cautious regarding the potential long-term consequences for the common stock.
To begin with, a junior preferred stock typically signals that the company urgently needs cash while also diluting its value. The stock will face substantial challenges due to tax liabilities resulting from unrealized gains of its holdings, while a decline in Bitcoin prices will negatively impact MSTR’s pricing.
