The year 2024 was a turning point for MicroStrategy Inc., a business intelligence company known as the largest corporate bitcoin holder. The company's shares rose by 402%, increasing its market capitalization to $83 billion, making MicroStrategy the most profitable cryptocurrency company of the year.
Growth Underpinned by Bitcoin Investment Strategy
A key factor in MicroStrategy's success has been its active buildup of bitcoin reserves. In 2024, the company increased its reserves to 444,262 BTC, which is estimated at $45 billion at the time of publication.
The 120% increase in the value of bitcoin in 2024 was the catalyst for the growth of MicroStrategy shares. Contributing factors include:
The approval of a bitcoin-based exchange-traded fund (ETF) has attracted the attention of institutional investors.
Global support for digital assets, which has strengthened their status as a reliable tool for storing capital.
Michael Saylor, Chairman of the Board of MicroStrategy, has repeatedly stressed the importance of bitcoin in the company's strategy. According to him, bitcoin has become the "digital gold" for MicroStrategy, providing long-term financial stability and growth.
The cryptocurrency market: the growth of competitors
Besides MicroStrategy, other cryptocurrency-related companies have also shown significant growth.:
Core Scientific: 307% increase in shares.
Terawulf: an increase of 142%.
Bitdeer Technologies: increase in value by 122%.
These companies have actively invested in infrastructure development, including the expansion of mining capacities and the introduction of innovative technologies such as artificial intelligence. However, their achievements are still inferior to the successes of MicroStrategy, due to its strategic focus on bitcoin as the main asset.
Plans for 2025: new horizons
MicroStrategy continues to strive to further strengthen its position. The company plans to hold a shareholders' meeting in early 2025, where proposals to increase the number of declared shares will be considered.
The goal is to raise $42 billion through the sale of shares and the issuance of fixed income instruments. These funds will be used for:
An increase in Bitcoin reserves.
Implementation of new strategic initiatives.
According to Michael Saylor, this step is necessary to maintain the company's leadership in the crypto industry and its further growth.
Results of the year
MicroStrategy ends 2024 as the undisputed leader of the cryptocurrency industry, setting new standards for corporate investments in digital assets. The stock's 402% growth was the result of a sound strategy focused on long-term prospects.
With ambitious plans for 2025, the company is ready to continue expanding its influence in the crypto space, remaining a model for other market participants. MicroStrategy has proven once again that bold decisions and investments in innovation can bring impressive results.
