MicroStrategy’s investment in Bitcoin is yielding substantial returns, with its stock climbing over 7% on Oct. 25 to hit a 25-year high at $236.
This surge extended a six-week rally, solidifying MicroStrategy’s status as the largest corporate Bitcoin holder. The company’s shares have now surpassed Microsoft’s in performance, just as Microsoft is set to consider adding Bitcoin to its balance sheet.
“MicroStrategy is soaring to a new all-time high!” remarked Crypto Coin Coach on X, in response to the share price movement. “Crushing every company without Bitcoin on their balance sheet.”
Over the past five years, MicroStrategy (MSTR) stock has outperformed all companies in the S&P 500, boosting expectations for sustained bullish momentum due to its Bitcoin holdings. The stock’s performance has now surpassed Microsoft since 1999, with MicroStrategy rallying roughly 1,570% compared to Microsoft’s 1,467%, as shown in the chart below.
MicroStrategy’s recent gains are closely linked to its aggressive Bitcoin acquisition strategy, which began in 2020 amid declining software revenue. The company, led by Michael Saylor, recently purchased approximately 7,420 BTC for $458.2 million between Sept. 13 and Sept. 19, increasing its total holdings to 252,220 BTC, valued at nearly $17 billion at current prices. This represents over 1% of all Bitcoin that will ever be mined.
The recent rally has significantly boosted MicroStrategy’s market capitalization, which now stands at $43.35 billion, making it the 477th most valuable company worldwide. It is just 8% away from reaching a $50 billion market cap, according to Companies Market Cap data.
In 2024, MSTR’s trading volume against Nvidia has also surged, reaching 17.65% of Nvidia’s volume in October. On Oct. 11, MicroStrategy recorded a 30-million trading volume versus Nvidia’s 170 million, according to Investing.com.
With Bitcoin’s price hovering around $68,000, MicroStrategy’s net asset value (NAV) premium has climbed to nearly 3, the highest level since early 2021. The increasing market value, trading volumes, and NAV expansion suggest a strong potential for continued growth in MicroStrategy’s stock in the coming months and years.
