Here’s why MicroStrategy’s stock jumped 29% after Telsa purchased some bitcoins

Remember when Tysons, Virginia-based MicroStrategy began purchasing a bunch of bitcoins last year? Well, it looks like the expensive move is paying off for the publicly traded business intelligence company, since its stock price rose by 29% yesterday.

The stock jump came after electric vehicle and clean energy company Tesla purchased $1.5 billion in bitcoins of its own, which made the price of the cryptocurrency rise tremendously. At close yesterday, MicroStrategy’s stock was priced at $1,041 per share and it’s still on the rise today, currently valued at $1,201 per share.

MicroStrategy first purchased 21,454 bitcoins for $250 million last August, and the company has since purchased way more and currently owns more than $3 billion worth of bitcoins. In an interview with CNBC, MicroStrategy CEO Michael Saylor declined to confirm or deny if he has been in talks with Tesla CEO Elon Musk, but he did tweet out a thank you to him.

Congratulations & thank you to @elonmusk & @Tesla on adding #Bitcoin to their balance sheet. The entire world will benefit from this leadership.https://t.co/FVTepBqAI2

— Michael Saylor⚡️ (@saylor) February 8, 2021

In the midst of this recent success, Saylor doesn’t want to keep his decision-making process to himself when it comes to investing in bitcoin. The MicroStrategy executive shared some videos and a corporate playbook for investment in bitcoin, and he’s launching free educational courses for people interested in learning about the growing cryptocurrency through his nonprofit Saylor Academy.

“Companies that are converting their dollars into bitcoin are taking a non-performing asset, and they’re turning into the best-performing asset,” Saylor told CNBC in an interview.”

Founded in 1989, the technology firm manages an enterprise analytics platform that helps companies analyze internal and external data to make better business decisions, as well as develop mobile apps. MicroStrategy first decided to invest in bitcoin as part of its capital allocation strategy to maximize long-term value for shareholders, Saylor said last year.

Catch Saylor talking about MicroStrategy’s bitcoin plans on CNBC:

Tesla $TSLA has de-risked the acquisition of #bitcoin by public companies and accelerated the digital transformation of corporate balance sheets. Treasurers are now thinking about how to convert a non-performing asset into the best performing asset. https://t.co/7mO7z6WtQ4

— Michael Saylor⚡️ (@saylor) February 8, 2021

P.S. Dogecoin, anyone?