MicroStrategy (MSTR) price rises to all-time high

Shares of MicroStrategy (MSTR), the world’s largest corporate owner of Bitcoin, rose to a new all-time high for the first time in 24 years amid Bitcoin’s searing post-election rally on Monday.

The triumphant return of MicroStrategy

On Monday, MSTR opened at $296 per share, about 10% above Friday’s close. Soon after, the stock rose throughout the day to $340 by the end of the day, a new record high for the decades-old enterprise software company.

The company’s last high was in March 2000 during a brief wick up to $313 per share. The stock quickly collapsed to just $17 in May of that year and to less than $0.50 in July 2002.

MSTR then spent the next two decades sequestered well below $20 per share until MicroStrategy converted its entire treasury to BTC in August 2020. Since then, the company’s value has multiplied substantially and the stock started trading near BTC as a proxy for the digital asset. .

MicroStrategy has spent the past four years accumulating as much Bitcoin as possible through a combination of leverage and share issuance. The company now owns 279,420 BTC, of ​​which it now has a profit of $12.6 billion, according to Saylortracker.

MSTR outperforms Bitcoin

The latest rally in the company’s stock has outpaced even Bitcoin, with the company’s total market capitalization now nearly 3 times the value of the BTC on its balance sheet. MSTR is up 396% year-to-date, compared to BTC’s 109% increase.

On Monday, MicroStrategy Executive Chairman Michael Saylor announced another purchase of 27,200 BTC for $2.03 billion, his largest purchase to date.

“Our $MSTR treasury trades in the first 10 days of November resulted in a BTC return of 7.3%, a net profit to our shareholders of ~18,410 BTC,” he tweeted on Monday.

Last month, MicroStrategy announced its three-year plan to buy $42 billion worth of Bitcoin. Specifically, the 21/21 plan involves raising $21 billion through fixed income securities offerings and another $21 billion through equity offerings.

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