Benzinga - The CEOs of Block Inc (NASDAQ:SQ) and MicroStrategy Inc (NASDAQ:MSTR), Jack Dorsey and Michael Saylor respectively, have both expressed a bullish outlook on Bitcoin (CRYPTO: BTC) and have made significant investments in the cryptocurrency through their companies.
What Happened: Block reported a 37.5% growth in Bitcoin-related revenue. The company’s Bitcoin revenue reached $2.42 billion, marking a substantial increase compared to the previous year’s $1.76 billion. Furthermore, the gross profit derived from Bitcoin also saw an improvement, rising from $36 million to $44 million year-over-year.
Of importance is the fact that the market value of these holdings exceeded their book value by $114 million.
MicroStrategy, a business intelligence firm headed by Saylor, announced the purchase of an additional 155 bitcoins in October. This acquisition brought the total number of bitcoins acquired since the beginning of Q3 to 6,607. As of the end of October, MicroStrategy owned a substantial 158,400 bitcoins, procured at a total cost of $4.69 billion, approximately $29,586 per bitcoin.
However, it’s worth noting that MicroStrategy recorded an impairment loss on its digital asset holdings during Q3. The company reported an impairment loss of $33.6 million, bringing the cumulative impairment losses to $2.23 billion.
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We analyzed the better-performing stock between Block Inc (SQ) and MicroStrategy Inc (MSTR) over the course of the year.
MSTR vs SQ: One-Year Performance
MSTR Or SQ: 1 Year Performance (Photo: Benzinga)Considering the one-year performance, it is evident that MicroStrategy’s stock saw significant growth—rising from $248.44 to $453.63, representing an 82.59% increase. In contrast, Block Inc experienced a decline in its stock price as it dropped from $53.91 to $43.98, reflecting an 18.42% decrease.
Returns on Investment
MSTR Or SQ: Which Offers Better Returns? (Photo: Benzinga)Moreover, a deeper analysis determines the returns each stock offered over the given period. The final value of a $1000 investment in MicroStrategy would have reached $1825.91, showcasing 82.5% returns. On the other hand, an investment of $1000 in Block Inc (SQ) would have resulted in a final value of $815.80, which means an 18% decrease in investment.
Another aspect considered is the correlation between the stock movements of MSTR and SQ. The analysis showed a coefficient of determination (R2) of 0.0522, suggesting a weak relationship between the two stocks. This further supports the notion that their performance varies and does not move in tandem.
Price Action: At the time of writing, Bitcoin was trading at $34,617.55, down 2.61% in the last 24 hours, according to Benzinga Pro. MSTR was trading at $453.63, up 6.32%, while Block was trading at $43.98, up 7.37% in the last 24 hours.
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