How MicroStrategy Used an Unusual Tactic to Gain 172% in 2020
Shares of MicroStrategy (NASDAQ: MSTR) rose 172.4% in 2020, according to data from S&P Global Market Intelligence. The surge didn't exactly start in August, but that's when the business intelligence company lit the fuse.
MicroStrategy stock has been following along with the surging price of bitcoin tokens since Aug. 11, which is when the company said it would convert its traditional cash reserves and bond investments into a digital wallet full of bitcoin tokens. Management didn't stop there: It also took on $650 million of new debt in December for the sole purpose of buying even more bitcoin.
The popular cryptocurrency is surging thanks to a combination of technical, political, and speculative reasons. Therefore, MicroStrategy's bitcoin investment looks like a genius move right now.
Source Fool.com
