Here’s How MSTR’s Stock Performance Accelerated Due To Bitcoin Adoption, BTC Mining Firms To Follow Suit?

Ever since Microstrategy began Bitcoin adoption in 2020, the MSTR stock, in an impressive display of its stock growth, has outperformed all the companies on the S&P 500. The business intelligence company has continued on its part to amass the flagship crypto, by virtue of its former CEO and co-founder, Michael Saylor. The move has very well paid off so far, which is evident by MSTR’s stock performance since then. In a recent X post, Saylor has underscored MSTR’s performance since it started adopting Bitcoin. 

MSTR Outperforms, Institutional Interest Boosts

What’s even more interesting is, that the MSTR stock price has also managed to beat Bitcoin over the last four years. The company’s stock has surged by over a massive 1,000% since its Bitcoin adoption. Meanwhile, BTC and the S&P 500 have surged by 425% and 70%, respectively.

Due to this Bitcoin strategy, many institutional investors have long regarded the company as an avenue to gain exposure to the flagship crypto, which demonstrates how the MSTR stock has achieved such immense growth. While there were forecasts that Microstrategy could lose its Bitcoin edge after the spot Bitcoin ETFs debuted, however, on the contrary, MSTR boasted a year-to-date (YTD) gain of over 120%.

Notably, MicroStrategy’s Bitcoin adoption has continued to grow. The company recently bought 7,420 BTC ($458.2 million). Before this purchase, it had also bought $1.11 billion worth of Bitcoin, which marks its single largest buy to date. It currently holds 252,220 BTC at an average price of $39,266 per Bitcoin. Strikingly, the company holds almost 1.2% of BTC’s total supply.

Bitcoin Mining Firms Following Suit?

After Saylor’s MicroStrategy advocated for large corporations to buy bitcoin on the open market, surprisingly, one of the biggest bitcoin mining firms, Marathon Digital (MARA), also adopted the same strategy. And now another miner is following the same path.

Cathedra Bitcoin (CBIT), a firm that started as a miner, is changing its business model to develop data centers and will use profits from that business to buy Bitcoin instead of mining it. It cited unpredictable profit margins as a cause for the shift and noted that the firm’s primary goal is to accumulate bitcoin for the shareholders.

Saylor’s Bullish Prediction

Michale Saylor, the CEO of Microstrategy in his recent tweet has shared his bullish prediction on Bitcoin amidst the SEC’s approval of BTC ETFs options. He shared that the approval of options for IBIT will accelerate institutional Bitcoin adoption. On Friday, the U.S. Securities SEC approved the listing and trading of options for BlackRock’s spot Bitcoin ETF on the Nasdaq. Saylor’s forecast was posted in reaction to a thread by Bloomberg analyst, Eric Balchunas. 

Balchunas also shared a similar opinion, noting that the options trading will “attract more liquidity, which will in turn attract more big fish.” However, Balchunas stressed that this will be followed by other regulatory decisions and the actual listing will take more time.

Binance CEO Richard Teng also recently remarked that the institutional adoption witnessed so far is just the tip of the iceberg and expects more institutional investors to allocate crypto soon.