MicroStrategy Inc., a popular business intelligence platform known for aggressive Bitcoin ($BTC) investments, has seen a jump. As per CryptoQuant, a well-known on-chain analytics provider, MicroStrategy stock has witnessed a spike to $196 in terms of price, standing only two percent from the all-time high there. The analytics firm disclosed this development on its official X account.
MicroStrategy Stock hits $196, 2% away from ATHThe stock behaves like a leveraged version of #Bitcoin during bullish phases.Since MicroStrategy began purchasing $BTC on August 11, 2020, its stock has surged by 1,208%, while Bitcoin itself has risen by 445%. pic.twitter.com/AiRYFeUPoM
— CryptoQuant.com (@cryptoquant_com) October 8, 2024
MicroStrategy Works as a Leveraged $BTC Proxy during Bull Markets
CryptoQuant mentioned that the stock of MicroStrategy keeps acting in the form of a leveraged Bitcoin proxy. This particularly occurs during the bullish stages in the crypto sector. The statistics point out that MicroStrategy initially commenced buying Bitcoin back in 2020’s August under Michael Saylor as its CEO. He has reportedly been speaking in favor of the digital asset.
The stock of the firm has reportedly increased by 1,208%. This rise outpaces the remarkable elevation of 445% during the same time. This sheer jump in the stock points toward increasing investor confidence in the core business. It also signifies a surge in MicroStrategy’s Bitcoin-focused strategy. The platform has reportedly gained significant attention among the biggest corporate Bitcoin holders.
The Platform’s Huge Fund Allocation to Bitcoin Leads Stock Prices to Follow Crypto Market Movements
Hence, the treasury of MicroStrategy reportedly holds more than 152,800 $BTC. The firm’s decisions to dedicate significant portions of the balance sheet thereof to $BTC have led the stock trading thereof in strong correlation with the market movements in the crypto sector. During the bull markets, this correlation becomes even more prominent. At such times, the stock tends to operate as Bitcoin’s leveraged version, magnifying losses and gains.
