It is a truism in the stock market that no investor should ever put all their eggs in one basket; diversification of assets is crucial. Yet there are some mavericks who defy that bit of conventional wisdom, and one striking example is that MicroStrategy (NASDAQ:MSTR) Co-founder and Chairman Michael Saylor.

Saylor is known for being quite an enthusiastic bull, so much so that he has focused his business solely on buying and holding Bitcoin (CRYPTO: BTC). Today that is a lucrative strategy; Shares of MicroStrategy are up a brisk 25% in trading this week, according to data compiled by S&P Global Market Intelligence.

The Bitcoin Believer

If you are a staunch believer in a single asset, developing a simple approach to your business is easy. MicroStrategy’s overarching goal has always been to buy more Bitcoin for years.

To that end, it made a big purchase on Monday, just after closing an issuance of $800 million of convertible senior notes, which mature in 2030 (if not converted), and were sold to an unspecified number of institutional buyers.

The company wasted little time in loading up on more Bitcoin, acquiring 12,000 of the popular cryptocurrency at a price of around $72,000 each. Since the rough calculation of these figures comes to $864 million, it is clear that a large part of this comes from the banknote issue.

Barely breathing to slow down, MicroStrategy announced Wednesday another initial public offering of convertible notes. If not converted, these will be due in 2031, and the size of this issue is a relatively modest $500 million. In what came as no surprise to anyone, MicroStrategy said the funds will be used to purchase more Bitcoin and for “general corporate purposes.”

Come along on the road

The rest of the investing world has been on a MicroStrategy-like quest lately to get their hands on as much Bitcoin as possible. Fueled by favorable economic developments and the enormous popularity of Bitcoin Exchange Traded Funds (ETFs), the cryptocurrency has recently set new price records. It’s no wonder investors are so optimistic about MicroStrategy.

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Eric Volkman has positions in Bitcoin. The Motley Fool holds and recommends positions in Bitcoin. The Motley Fool has a disclosure policy.

Why MicroStrategy shares skyrocketed 25% this week was originally published by The Motley Fool

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