Michael Saylor’s company, MicroStrategy (let’s just call it Strategy), is making waves with its massive Bitcoin investment. Saylor claims their Bitcoin strategy has outperformed even the biggest tech giants. Let’s dive into the details.
Strategy’s Bitcoin Bonanza
Strategy currently owns around 638,460 Bitcoins, recently adding another 1,955. Their total investment? Roughly $47 billion, with an average buy price of about $73,880 per Bitcoin. Currently, that Bitcoin stash is worth approximately $71 billion. Saylor argues this significantly outperforms the returns of the “Magnificent Seven” tech companies (Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla).
Outperforming the Magnificent Seven
Saylor shared a chart comparing “open interest” (a measure of market activity) to market capitalization. Strategy topped the chart at 100%, while Tesla was at 26%, and the rest of the Magnificent Seven were far lower. He interprets this as proof that Strategy’s Bitcoin-focused strategy has generated superior market dynamics. He even highlighted the annualized returns: Strategy at 91%, Nvidia at 72%, Tesla at 32%, Alphabet at 26%, Meta at 23%, and the others significantly lower.
Big Tech’s Challenges
Saylor points out that the Magnificent Seven are facing various headwinds. Apple and Microsoft are dealing with increased regulation, Amazon is seeing slower sales, and Tesla is facing stiffer competition. Even Nvidia, a strong performer thanks to AI chip demand, hasn’t matched its earlier explosive growth.
More Companies are Joining the Bitcoin Train
Strategy wasn’t alone in buying Bitcoin recently. Around 12 companies increased their holdings, with Gemini adding 1,191 BTC and Bitdeer adding 333.5 BTC. The top 100 publicly-held Bitcoin owners now control over 1,009,202 BTC, worth over $117 billion.
Bitcoin: The Future?
Saylor’s message is clear: Bitcoin might be the key to outperforming traditional tech. He challenges investors to consider whether a Bitcoin strategy offers a better path to growth than relying solely on traditional tech giants. Whether you see it as a challenge or a warning is up to you.