Michael Saylor, Executive Chair at Strategy Inc. (NASDAQ: MSTR), recently spotlighted the company’s remarkable asset performance since its pivot to a Bitcoin-integrated treasury strategy in August 2020. By adopting Bitcoin as a core reserve asset, Strategy has distinguished itself among leading market contenders, trailing only Nvidia Corp. (NASDAQ: NVDA) in annualized return rates over this timeframe.
Highlighting this trend, Saylor shared a comparative chart on social media platform X, showcasing annualized returns during the so-called “Bitcoin Standard Era,” the period beginning August 10, 2020, when Strategy fully embraced Bitcoin as a principal treasury reserve asset.
According to the chart, Nvidia achieved a staggering 1,557% return, equating to a compound annual growth rate (CAGR) of 68%. Following closely, Strategy’s stock gained an impressive 1,173%, delivering an annualized return of 60%. Bitcoin, which forms the backbone of Strategy’s assets, rose by 674% since the commencement date, translating into a 45% annualized return.
Saylor designated Nvidia as representing “Digital Intelligence,” Strategy Inc.’s stock as “Digital Credit,” and Bitcoin as “Digital Capital,” collectively identifying these as the decade’s preeminent digital assets.
However, recent performance indicates notable volatility for Strategy Inc. Over the last 12 months, the company’s stock has declined by approximately 52%, in stark contrast to solid shareholder returns posted by other tech titans. Nvidia gained nearly 39%, Alphabet Inc. (NASDAQ: GOOG) achieved an impressive 71%, Microsoft Corp. (NASDAQ: MSFT) increased 15%, and Tesla Inc. (NASDAQ: TSLA) moderated gains by about 10% in the same period.
Examining asset performance since August 10, 2020, and over the last year, the data shows:
- Strategy Inc. (MSTR): +1,173% total gain since 2020, -52.09% over the past year, and +923.08% over ten years.
- Nvidia (NVDA): +1,557% total gain since 2020, +38.73% over the past year, and a remarkable +24,376.66% spanning ten years.
- Tesla (TSLA): +371% total since 2020, +10.34% over the last year, and +3,054.61% over ten years.
- Alphabet (GOOG): +342% since 2020, +71.17% annually, and +818.60% across ten years.
- Microsoft (MSFT): +137% since 2020, +14.88% yearly, and +808.42% over a decade.
The pronounced recent slide in Strategy's stock price contrasts with its robust multi-year performance. This divergence can be partially attributed to the company’s direct correlation with Bitcoin’s price movements. Strategy Inc. operates with a leveraged approach heavily reliant on Bitcoin, issuing equity and debt instruments to procure additional Bitcoin when prices increase. Conversely, this amplifies exposure during downturns, as witnessed in the last year with Bitcoin valuations faltering.
In preparation for market volatility, Strategy announced last year a $1.44 billion reserve fund aimed at supporting dividend payments and interest obligations without the necessity to liquidate Bitcoin holdings during price downturns.
From a valuation perspective, Strategy’s current market capitalization stands at approximately $49.21 billion. Meanwhile, its Bitcoin assets are valued at just over $62 billion, positioning the stock at a discount relative to its net asset value (NAV), which could be indicative of market pessimism or uncertainty about its leveraged Bitcoin strategy.
Regarding market prices at the time of reporting, Bitcoin was priced at $92,034.52, marking a 1.56% increase within the preceding 24 hours based on Benzinga Pro data. Conversely, Strategy’s shares declined by 5.77%, closing at $157.33 during the previous regular trading session, with observable weak performance trends over short, medium, and long-term intervals.
In contrast, Nvidia’s stock has demonstrated sustained strength, reflected in consistent upward price trends, underscoring its leading position among technology and digital intelligence assets. Comparing Strategy with Nvidia’s performance provides insights into divergent asset class dynamics within the digital economy.
The designation of these assets reflects an evolving classification within digital financial instruments: Nvidia represents the ‘intelligence’ category through its pivotal role in AI and graphics processing technologies; Strategy Inc., through its equity tied to Bitcoin, embodies ‘digital credit’; and Bitcoin itself is positioned as fundamental ‘digital capital.’