The founder of MicroStrategy recently marked the fourth anniversary of the company’s decision to adopt Bitcoin as its primary treasury reserve asset.
On August 11, 2020, MicroStrategy made headlines across the cryptocurrency world by making this unprecedented move, transforming its reserves.
MicroStrategy is not a boring company
Founded in 1989 and going public in 1998, MicroStrategy experienced a meteoric rise during the dot-com boom, with its stock price grew by thousands of percent.
Four years ago today, MicroStrategy adopted #Bitcoin as its primary treasury reserve asset; since then $MSTR has outperformed 499 of 500 stocks in the S&P 500. pic.twitter.com/Db7GVeyc9a
— Michael Saylor⚡️ (@saylor) August 11, 2024
But after the hype stopped, the dot-com boom became a dot-com bubble, and the company’s fortunes took a dramatic turn in early 2000 when its stock plummeted following a revenue restatement.
This drop came after the U.S. SEC introduced new reporting guidelines for tech companies, because there were rumors about they inflating their earnings figures.
The fallout from the accounting scandal was severe, especially for Saylor himself, who infamously became the first individual to lose $6 billion in wealth in a single day.
MicroStrategy’s stock wasn’t an interested security for nearly two decades before Saylor’s decision to invest heavily in Bitcoin breathed new life into the company.
Hall of fame
Since adopting Bitcoin as its main reserve asset, MicroStrategy has seen a quite impressive reversal in its fortunes.
Saylor highlighted that the company’s stock has outperformed 499 of the 500 stocks in the S&P 500, a more than nice turnaround from its previous struggles.
Earlier this year, MicroStrategy’s stock was even added to the MSCI World Index, signaling its impressive performance, which has outpaced Bitcoin itself.
MicroStrategy is still not yet eligible for inclusion in the prestigious S&P 500 index, primarily due to a reported loss of $102.6 million in the last quarter.
Of course, Saylor has reiterated the company’s commitment to continuing its Bitcoin acquisition strategy, signaling his confidence in the cryptocurrency’s future.
Fortune favor the braves?
MicroStrategy’s journey from a struggling tech firm to a major player in the cryptocurrency space is a textbook example of how bold, unconventional strategies can dramatically alter a company’s performance.
Saylor’s decision to doubling down on Bitcoin not only revitalized MicroStrategy’s stock performance but also positioned the company as a leading player for cryptocurrency adoption within the corporate world.
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