Microstrategy outperforms 97% of S&P 500 stocks despite bitcoin crash

Despite Microstrategy suffering losses with its bitcoin investments, the Canadian company is still outperforming most S&P 500 stocks. Since implementing bitcoin into its investment strategy, Microstrategy’s returns are outperforming 97% of its S&P competitors.

Return of nearly 160%

The value of Microstrategy shares, (MSTR), left many companies behind after the implementation of bitcoin. Although many people argue that this was bad, the hard truth is that it was the right thing to do.

Since Microstrategy started doing this in August 2020, the company made a neat return. Even though earnings fell in 2022 as a result of the crypto crash. MSTR posted a return of 158.65% over a 728-day period, reports Finbold. It is noteworthy, however, that the stock’s return against bitcoin itself is 98.28%.

How much BTC does Microstrategy have?

The company’s last purchase was 480 Bitcoin. That is a lot for a private individual, but for a company like Microstrategy, it is a fraction of the whole. In fact, this purchase accounted for only 0.4% of their entire bitcoin stock. The entire stock is about 130,000 bitcoins, purchased for a total value of almost $4 billion.

The company did suffer a loss with this. With the average purchase price of 30,600 for 130,000 bitcoins, that amounts – with a current exchange rate of $23,800 – to a loss of about $884 million (864 million euros).

Now in the loss though

After the cryptocurrency crash, Microstrategy did dip into losses. In fact, Bitcoin has dropped by more than 60% since its high in November. Microstrategy has been through this whole rollercoaster – from the high of $69,000 – to the past low of about $17,600.

So Microstrategy’s profits were very high just before the crash. The starting point of the first Microstrategy purchase was around a price of $12,000. Here the price has not been back since this purchase, but after this crash the company is in much worse shape than before.