NVIDIA shares are currently the talk of the town. With massive share price gains of over 500% in the past three years and almost 3,000% in the past five years, it represents one of the biggest ever successes in the technology sector. NVIDIA has made a name for itself by leading the way in graphics processors and gaming hardware and has consistently delivered strong returns for its investors, particularly with the recent buzz around artificial intelligence (AI). NVIDIA is currently the third largest public company in the world behind Microsoft and Apple - with a market capitalization of over three trillion US dollars.
Success through Bitcoin
However, despite this impressive track record, there is one company that has outperformed NVIDIA: the US software company MicroStrategy. Since launching its Bitcoin strategy in August 2020, the company has outperformed the graphics giant. MicroStrategy decided back then to use Bitcoin as its primary reserve currency and has since invested continuously in the most valuable of all cryptocurrencies - including with borrowed capital.
MicroStrategy's decision to invest heavily in Bitcoin and its path to becoming the "first Bitcoin development company" brought the company, which was on the proverbial decline at the time, an enormous increase in value and international attention. Since August 2020, the share price has risen by more than 1,200%, while Nvidia has "only" seen price gains of around 1,050% in the same period. This prompted Michael Saylor, the founder and CEO of MicroStrategy, to write a post on the short message service 𝕏.
To outperform $NVDA - bet on a #Bitcoin standard.
Michael Saylor, founder of MicroStrategy
To outperform $NVDA - get on the #Bitcoin Standard. pic.twitter.com/Dp361BFfPi-
Michael Saylor⚡️ (@saylor) July 15, 2024
The MicroStrategy success story
MicroStrategy, which is actually a software company in the field of business intelligence, has gained considerable attention through its Bitcoin investments. Michael Saylor has repeatedly emphasized in recent years that Bitcoin is a valuable hedge against inflation and promises significant long-term appreciation. This conviction has led him and MicroStrategy to buy and hold Bitcoin on a large scale.
Since the beginning of this strategy, MicroStrategy has acquired more than 226,000 Bitcoin, which has not only increased the company's value, but arguably also boosted investor confidence. The company has since been seen as a pioneer in integrating Bitcoin into its business strategy and MicroStrategy's stock has multiplied, as mentioned above. The 5-year chart clearly shows how the share price has risen sharply since August 2020.
What if NVIDIA were to adopt a Bitcoin strategy?
Given MicroStrategy's success, what if NVIDIA were to adopt a similar Bitcoin strategy? Could this lead to even more impressive performance? Or would it bring new challenges and potentially scare off shareholders? Either way, the idea that a technology giant like NVIDIA could invest in Bitcoin is a source of exciting discussion and speculation. Eric Weiss, CEO of the Bitcoin Investment Group, commented on this as a kind of open question under the above-mentioned post by Michael Saylor.
Imagine if NVIDIA also adopted a Bitcoin standard.
Eric Weiß
However, the responses all went in a similar direction. The community agrees that one day, NVIDIA will have no choice but to adopt Bitcoin and integrate "digital gold" into its business processes. However, only time will tell if and when this will happen. Until then, shareholders are likely to be quite satisfied with the performance to date.
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