Michael Saylor's Strategy Outperforms Apple, Tesla, Amazon And Other Mag 7 Stocks And It's Not Even Close: Has The 'Bitcoin Treasury' Bet Paid Off?
Michael Saylor, co-founder of Strategy Inc. (MSTR), highlights the success of his 'Bitcoin Treasury' strategy, boasting a 44% return over three months, outperforming major stocks like Apple and Tesla. Despite a recent dip in share price, Saylor's approach has positioned the company as a leading proxy for Bitcoin, trading at a significant premium to its Bitcoin holdings. As tech stocks struggle, Strategy continues to thrive, benefiting from rising Bitcoin prices. Saylor's performance claims have sparked discussions, particularly regarding comparisons with other stocks in the cryptocurrency space.
The co-founder and executive chairman of Strategy Inc. MSTR, Michael Saylor, isn’t shying away from showcasing the success of his ‘Bitcoin Treasury’ gambit, which is now several years in the making, with a handful of copy-cats in the fray.
What Happened: On Sunday, Saylor took to X, sharing a chart showing the 3-month performance of different stocks, commodities, and cryptocurrencies, which of course, included Microstrategy, which now conducts business under the brand name of ‘Strategy.’
The chart shows the company’s 44% 3-month return, far outpacing the Magnificent 7 stocks, which, barring Tesla Inc. TSLA, Microsoft Corp. MSFT, and Nvidia Corp. NVDA, are either flat or have witnessed steep declines during this period.
Here’s a comparison between Strategy Inc. and each of the ‘Mag 7’ stocks over the past three months, as well as their year-to-date performance.
The stock has outpaced even Gold, tracked by the SPDR Gold Trust GLD, the Invesco QQQ Trust QQQ, which tracks the Nasdaq, and the SPDR S&P 500 ETF Trust SPY.
Most importantly, however, the stock has outpaced Bitcoin, which grew 22% during these three months, or just about half of what Strategy has delivered to its investors.
Saylor showcased this performance while cheekily writing “your portfolio needs a strategy” in his X post. Replies to the post, however, pointed out that he conveniently missed out on Bitcoin miner, MARA Holdings Inc. MARA, and GameStop Corp. GME, another treasury firm, which have posted returns of 2.4% and 22.13% during this period.
Why It Matters: This is rather surprising, since the company’s rise to prominence in recent years has been tied entirely to it becoming a proxy for Bitcoin. Starting in 2020, when it first pioneered the concept of corporate “Bitcoin Treasury,” the stock has since been referred to as a “Bitcoin Development Company.
Disclosure: 82% of retail CFD accounts lose money
However, it has long traded at a premium to its Bitcoin holdings, at 256% during November last year, which analysts attributed to its “Bitcoin Yield Strategy.” This is a controversial performance indicator that highlights the ratio between its Bitcoin holdings and diluted equity shares.
According to a report by VanEck, Strategy still trades at a 112% premium to the face value of its Bitcoin holdings, which it attributes to the leverage it employs by issuing convertible debt and equity to fund its aggressive Bitcoin purchases.
In recent months, as tech stocks, along with broader markets, reel from trade and tariff-related uncertainties, Strategy continues to gain, with rising Bitcoin prices, which investors look upon as a potential safe haven during a recession.
Price Action: Shares of Strategy were down 0.43% on Friday, trading at $369.06, and are down 0.09% after hours on Monday.
According to Benzinga’s Edge Stock Rankings, Strategy scores high on Momentum, but low on all other metrics. It does, however, feature a favorable price trend in the short, medium, and long term. Click here for deeper insights into the stock.
- Trump Administration Set To Ease Big Bank Rules In Major Rollback Since 2008 Crisis: Here Are The Stocks And ETFs Investors Could Consider
Photo courtesy: PJ McDonnell / Shutterstock.com
