Bitcoin Standard on MSTR beats performance of S&P 500, USD, NASDAQ, GOLD, BOND and SILVER

• Saylor claims that MicroStrategy’s Bitcoin investment has outperformed investments in other assets.
• MicroStrategy is the publicly traded company with the largest amount of Bitcoin holdings.

Institutional investors’ significant accumulation of Bitcoin was partly responsible for the leading digital asset’s recent bullish market run. One such institutional investor is the business intelligence company, MicroStrategy. After significant subsequent BTC accumulation, MicroStrategy founder, Michael Saylor, stated that the company had adopted a Bitcoin standard where the company’s BTC purchases are not about buying a lot of it.

Instead, it is about investing the company’s balance sheet in the leading digital resource. Since the last bullish run in the crypto market, MicroStrategy’s share price (MSTR) has outperformed investments in traditional assets such as the S&P 500, Nasdaq stocks, gold, bonds, solvency and USD.

Recently, MicroStrategy founder and executive chairman Michael Saylor tweeted that since MicroStrategy adopted a Bitcoin standard, the company’s stock price has registered a 5 percent increase. In contrast, investments in traditional assets have had negative double-digit losses. Saylor added that the performance comparison is based on data collection as of August 10, 2020. The S&P 500 recorded a loss of -34 percent within the period mentioned above, while silver was the worst performer at -61 percent.

Since @Microstrategy adopted one #Bitcoin Standard:

MSTR +5%

S&P 500 -34%
USD -38%
NASDAQ -41%
GOLD -50%
BOND -52%
SILVER -61%

Performance vs. BTC since August 10, 2020.

— Michael Saylor⚡️ (@saylor) 15 October 2022

MicroStrategy records losses despite adopting the Bitcoin standard

Still, MicroStrategy is one of the biggest victims of the current crypto winter. MSTR recorded a loss of $918.1 million in its Q2 2022 report. Revenue for that quarter was $122.1 million, about $4 million below the company’s estimates. Almost $917.8 million of this loss was due to the company’s Bitcoin holdings.

MSTR’s Bitcoin value has dropped significantly to around $3 billion, a stark contrast to its acquisition value of $3.975 billion. Shortly after the company released its Q2 2022 report, MicroStrategy’s founder stepped down as the company’s CEO. He then took on an executive chairman role.

Before Saylor resigned, Saylor led MSTR to adopt a Bitcoin standard and was responsible for the largest acquisition of MSTR’s purchase of this crypto-asset. Saylor said his role as MSTR’s executive chairman would allow him to focus more on the company’s Bitcoin advocacy initiatives and acquisition strategy.

He added that separating the roles of chairman and CEO will help the company better pursue its corporate strategy of acquiring and holding Bitcoin and expanding its analytics software business. MSTR’s new CEO, Phong Le, would oversee the company’s overall operations. He was previously the company’s president.

Curiously, the company continues to increase its Bitcoin holdings by buying the dip. The company made several Bitcoin purchases between August and September, buying $6 million worth of BTC (301 Bitcoins at an average price of $19,851 per BTC) on the last day of last month.

The acquisition helps MicroStrategy maintain its position as the publicly traded company with the largest Bitcoin holdings. It has 129,218 BTC as of its Q1 2022 report. Nevertheless, many Bitcoin critics have argued that the perspective of Bitcoin being an inflation-proof asset has been shattered by the current crypto winter.