Microstrategy outperforms Warren Buffet’s Berkshire Hathaway by the largest margin since the dot-com bubble

Michael Saylor’s Microstrategy is outperforming Warren Buffet’s Berkshire Hathaway by the largest margin. The software company has surged by 2,295.74% since August, when it first bought its Bitcoin holdings, while Berkshire Hathaway has surged by 36.02% in the same duration.

Software company and Bitcoin corporate holder Microstrategy is outpacing legendary investor Warren Buffet’s Berkshire Hathaway class A stock by the largest margin since the dot-com bubble.

A chart shared by Barchart, a financial markets charting firm, shows that Microstrategy vs. BRK class B stock is at 0.72 and is rapidly approaching the highs witnessed during the dot-com bubble.

Microstrategy outshines legendary investor Warren Buffet’s Berkshire Hathaway

MSTR is up 2,295.74% since it adopted Bitcoin as a strategic reserve asset in August 2020. In the same duration, Berkshire Hathaway has averaged 36.02%.

Microstrategy has also outpaced Bitcoin’s performance since August 2020. The crypto asset has surged by 673.83% compared to MSTR’s 2,295.74%.

Warren Buffet’s negative outlook on Bitcoin has kept Berkshire Hathaway away from the crypto industry. Buffet and his late business partner Charlie Munger have publicly criticized cryptocurrencies. In 2018, Buffet referred to Bitcoin as a “rat poison squared,” while Charlie Munger predicted the asset would crash to zero in 2021.

Bitcoin and Microstrategy have also outperformed Warren Buffet’s top stocks in Berkshire Hathaway’s portfolio. These stocks include Bank of America, American Express, and Apple in the same timeframe.

Bank of America and American Express have averaged 76.15% and 171%, respectively, since August 2020, while Apple has surged by 86%. Bitcoin and MSTR have also outpaced the S&P 500, which has registered an upsurge of 71.31%. 

Microstrategy adopted Bitcoin as a strategic reserve asset on August 11, 2020, and purchased 21,454 Bitcoin for $250 million. Since then, the company has been on a buying spree and has completed Bitcoin purchases nearly every month.

According to data from Bitcoin Treasuries, the software company is the largest corporate Bitcoin holder with 279,420 total BTC holdings worth $25.3 billion at Bitcoin’s current price of $90,540.

Michael Saylor predicts Bitcoin could surge to $13 million

Microstrategy now holds over 1% of all Bitcoin in circulation today. The company has incurred an average cost of 1 BTC of $42,692. Its latest purchase happened on November 11th, involving an additional 27,200 bitcoins worth $2.03 billion. Michael Saylor has been very vocal about the asset. The CEO forecasted that Bitcoin’s price could skyrocket to $13 million in the next 21 years.

Microstrategy has set the pace for other companies to adopt Bitcoin as a strategic reserve asset to hedge against inflation and boost shareholder value. Solidion Technology, a US-based battery materials provider, announced on November 14th that it adopted Bitcoin as its reserve asset.

The company also announced it had made its first Bitcoin purchase. Solidon unveiled its plans to use 60% of its excess cash reserves to purchase more Bitcoin and increase its overall Bitcoin holdings. They added that they will be converting interest earnings from other investments, such as money market accounts, to Bitcoin. Similarly, in May, Tokyo-listed investment firm Metaplanet adopted Bitcoin as a strategic reserve asset.