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Oct '24 β€’ πŸ’¬ Discussion
Microstrategy up 1,540% since 2020, while S&P only 111%
Microstrategy are one of the most interesting companies right now when it comes to Bitcoin.
They are a publicly listed company who's Founder/CEO Michael Saylor discovered Bitcoin some years ago and has now become one of Bitcoin's largest evangelists.
Meanwhile the S&P 500 is one of the most famous weighted indexes of the top 500 companies on the US stock market. In other words, it gives an average of the increase in US stock prices.
In the past 4 years the S&P 500's gone up 111%, meaning you would have more than doubled your money if you bought the S&P, which is a great return for 4 years of investing.
Imagine an investment of $100,000 would now be worth $200,000!
However, as the article above reports, if you'd bought shares in Microstrategy you would have gotten a 1,540% growth, which is around a 16x return on your investment!
That means $100,000 would now be around $1.6m in just 4 years - pretty epic right!
So what's Microstrategy done to get such an incredible return? Well they started buying up Bitcoin!
What's most fascinating about this story is that Microstrategy's revenue hasn't changed much in these past 4 years, but their valuation has changed drastically, all because of how they store their company profits.
Microstrategy has figured out the "infinite money glitch" in corporate finance, by selling convertible notes and stacking more and more Bitcoin in their company treasury. In a future post I'll likely explain exactly how this works.
But for now it's enough to say those who aren't buying Bitcoin are missing out.
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Arthur Fox
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Microstrategy up 1,540% since 2020, while S&P only 111%
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