MicroStrategy is about to buy $650 million worth of #Bitcoin and raise their total investment to $1.125 billion.

When it comes to public companies $MSTR is winning the #BTC treasury game by a good margin.

Time for a thread

1/ MicroStrategy started their #Bitcoin treasury program back in August.

The least we can say is that this was good for $MSTR shareholders.

See for yourself

2/ Looking at MicroStrategy's stock correlations it is clear that something happened.

Before:
MSTR vs BTC correlation +22%
MSTR vs NASDAQ correlation +51%

After:
MSTR vs BTC correlation +53%
MSTR vs NASDAQ correlation +20%

3/ This jump in the correlation between $MSTR and #Bitcoin makes a lot of sense when you consider that the current value of their #BTC treasury hodlings is more than 25% of their market cap.

4/ MicroStrategy's performance is going to be tied to #Bitcoin in the foreseeable future.

At the close on Friday $MSTR return on BTC holdings was about 60%.

But this is just the start of this halving cycle. We haven’t seen anything yet.

5/ @michael_saylor is showing the way:

- Use #Bitcoin as a treasury asset to preserve your purchasing power.
- Do it early to benefit from the upside of the Bitcoin adoption curve.

More of my thoughts on that here https://ecoinometrics.substack.com/p/ecoinometrics-december-09-2020