MicroStrategy (MSTR) is outperforming leading traditional assets since adopting the Bitcoin standard

Bitcoin’s (BTC) recent bull market was inspired by institutional investors amassing assets at historic levels. Among the notable institutions is US-based business intelligence firm MicroStrategy (NASDAQ: MSTR ) which has invested in BTC under the Bitcoin standard.

After starting to accumulate the flagship cryptocurrency, the company’s shares have registered positive gains compared to other traditional investment products. Along these lines, data compiled by Finbold indicates that since MSTR adopted the Bitcoin standard on August 10, 2020, the stock has risen 69.31% as of October 14.

During the period, the US dollar had the second highest performance at 20.70% followed by the S&P 500 index at 6.60%. Other assets trailing MicroStrategy include the NASDAQ index (-5.89%), gold (-18.05%) and silver (-36.95%).

MicroStrategy records losses by Bitcoin standard

However, despite MicroStrategy’s stock performance against Bitcoin, the company has emerged among the biggest casualties of the ongoing crypto meltdown. During the second quarter of 2002, MSTR reported quarterly revenue of $122.1 million against expectations of $126 million, with a loss of $918.1 million.

Of the losses, $917.8 million was attributed to Bitcoin holdings. By then, MicroStrategy’s Bitcoin haul was valued at nearly $3 billion, against its acquisition value of $3.975 billion.

Furthermore, following the losses, the company’s CEO Michael Saylor left his position after being instrumental in helping the company accumulate Bitcoin.

Interestingly, the company has continued to buy on dips, with the recent Bitcoin purchase coming between August and September. As reported by Finbold on September 20, the company purchased an additional 301 Bitcoins at an average price of $19,851 per coin, making the entire purchase nearly $6 million.

Bitcoin Correlation with Stocks

However, it is worth mentioning that Bitcoin has been trading in line with stocks, showing historical correlation as the economy battles high inflation and interest rate hikes. However, the condition has made assets such as the US dollar more prominent, with the currency rising to historic levels while crippling other global currencies.

For example, the dollar’s strong performance against global fiat currencies prompted investors to turn to Bitcoin as a hedge. At the same time, the transition to Bitcoin was an opportunity for investors to profit from arbitrage.

Meanwhile, Bitcoin is trying to rally past the $20,000 level. At press time, the asset was trading at $19,500.

Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.