MicroStrategy stock price more than doubles in 2023 in lockstep with Bitcoin
MicroStrategy's infamous Bitcoin (BTC) investment strategy is playing out profitably so far into 2023.
Today, MicroStrategy's stock MSTR is up roughly 140% year-to-date (YTD) to $350 per share, its highest level since September last year. It mirrored Bitcoin's 90% YTD gains, maintaining a strong positive correlation with the top cryptocurrency.
To recap, MicroStrategy is essentially a proxy for direct BTC investment without a spot Bitcoin exchange-traded fund (ETF) in the U.S. It holds 140,000 BTC worth $4.26 billion, the most by a publicly-traded company as a part of its Treasury strategy.
MSTR investors typically get their buying or selling cues from the same catalysts that drive Bitcoin market trends.
As a result, the stock has mirrored the BTC price uptrend so far in 2023, led by rush-to-safety trades amid the U.S. banking crisis and anticipation the Federal Reserve would stop hiking rates.
For instance, CNN data shows Bank of America's entities owns 86,147 MSTR shares. Similarly, Fidelity purchased 97,199 MSTR shares throughout 2022, suggesting growing institutional interest in proxy Bitcoin investments.
Coinbase's COIN, another stock offering indirect crypto exposure, has doubled in value this year as well.
MicroStrategy is essentially an enterprise software solution company and generates its revenue from software licensing and subscription services.
The firm realized a net loss of $193.7 million during Q4/2022, up from $137.5 million a year ago, led by a Bitcoin impairment loss of $197.6 million. Furthermore, its operating cash flow was $18.2 million compared to a positive cash flow of $3.2 million in the same quarter a year ago.
Revenue isn't what you're making it out to be. If a lemonade stand does $100M in revenue and
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