Microstrategy beats Nvidia in 4-year returns thanks to Bitcoin

Key facts:
  • MicroStrategy has a total of 252,220 BTC in its investment portfolio.

  • The company also outperforms companies in sectors such as pharmaceuticals, aerospace and energy.

MicroStrategy (MSTR), founded and chaired by Michael Saylor, has surpassed giants like Nvidia in terms of returns since adopting an aggressive bitcoin investment strategy.

In a message via social network X, Saylor highlighted how his company has achieved superior returns to large companies in the S&P 500 index, including key sectors such as artificial intelligence, high-speed networks, pharmaceuticals, aerospace and energy.

A chart presented by Saylor shows that since August 10, 2020, when the company adopted its bitcoin strategy for its corporate treasury, MicroStrategy shares have grown by 1,071%. This outpaces Nvidia, which saw a 939% increase in the same period.

Top 10 fastest-growing stocks in the S&P 500 index. Source: FactSet.

This represents a difference of 132% between both companies. This remarkable performance of MSTR is attributed to its decision to incorporate bitcoin (BTC) as a central part of its investment strategy, which has led it to accumulate the largest amount of this digital asset in its treasury among listed companies.

At the moment, MicroStrategy owns 252,220 BTCwith its most recent purchase of 7,400 BTC between September 13 and 19, worth close to $460 million, as reported by CriptoNoticias.

The acquisition reinforces Saylor’s commitment to bitcoin as a superior store of value.

MicroStrategy before bitcoin

Before this strategy, MSTR was performing modestly, with its shares trading at just $14. in June 2019, as seen in the following graph: TradingViewToday, those same shares are trading at $144, having hit their highest peak of $178 so far this year. This spectacular rally reflects the positive impact of its bitcoin-centric approach.

MSTR Price. Source: TradingView.

Saylor not only celebrated this achievement, but also urged others to follow the MicroStrategy modelstating that any individual, family, company or country can replicate this strategy and “enjoy the same superior performance.”

Nvidia is strong but I can’t beat MicroStrategy’s strategy

Surpassing Nvidia, a company that has seen massive growth thanks to the rise of artificial intelligence (AI), is a significant milestone.

Nvidia, which has benefited from OpenAI’s launch of ChatGPT and AI, has become the third most valuable company in the worldonly behind Microsoft and Apple, reporting quarterly income of $30.04 billion, 122% above market expectations, according to Companiesmarketcap data.

Despite these results, MicroStrategy has managed to eclipse Nvidia in terms of performancethanks in part to its bitcoin-focused treasury strategy, moving away from traditional assets.

In addition, the company launched a long-leveraged ETF (1.75x) last August, allowing investors to amplify their profits or losses almost twice as much depending on the movement of the company’s shares, as also reported by this media.

While MicroStrategy continues to reap the benefits of its focus on bitcoin, Nvidia continues to dominate the artificial intelligence space, demonstrating how two companies from different industries can excel in their respective areas, attracting the attention of different types of investors.

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