MicroStrategy stock climbs 200% in 2024 as it plans to become a Bitcoin bank

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Last Updated on 14 October 2024 by CryptoTips.eu

Shares of MicroStrategy, Michael Saylor’s investment firm, rose to a 25-year high last week as investors responded enthusiastically to their plans to become a Bitcoin bank in the future. Compared to the beginning of the year, the stock of Saylor’s company (which now owns more than 1% of all Bitcoins) increased in value by more than 200%.

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Comeback

It must be the ultimate comeback as a company. MicroStrategy was once referred to as the company that lost the most value during the DotCom crisis from 1999 to 2001. Saylor was razed to the ground by the US business press during those years. The man who once lost 6 billion in stock market value still stayed on as CEO and managed to revive the firm.

Since 2020 his company, which at the time still sold consultancy software and had McDonalds as a customer, has once again gone in a different direction. Saylor believed very strongly in Bitcoin and started purchasing it with all the company funds at his disposal. That of course looked very bad in 2022 when Bitcoin dropped to a value of $16,000 when FTX went bankrupt (and MicroStrategy had purchased Bitcoins for an average value of $30,000), but in 2024 it turns out to have been a brilliant move.

60%

The company has already purchased more than 250,000 Bitcoins and spent around $10 billion on them. Thanks to the increase in value of the largest digital currency this year, that investment is of course worth more than 60% more.

Last week, Saylor announced plans to start a separate division within the company that would act as a Bitcoin bank, allowing other companies and individuals to take out loans and submit Bitcoin as collateral.

Investors responded very enthusiastically and sent MicroStrategy shares 15% higher. Since the beginning of the year, Microstrategy’s share has already risen 200%. It is doing better than Meta and Nvidia, both of which have also risen by more than 70%.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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