MicroStrategy stock has grown 94% year-to-date (YTD) in 2024, fueled by Bitcoin’s rally above $97,000. The company holds 331,200 BTC, now valued at approximately $32 billion, with unrealized gains of $15.51 billion, based on data from Dropstab.
MicroStrategy BTC Portfolio Growth Chart. Source: DropsTab
This year, Bitcoin’s increasing acceptance in finance has driven demand for Bitcoin-backed equities. MicroStrategy, as a major corporate Bitcoin holder, has become a key player in this trend.
Data from MSTR Tracker shows that among major tech companies, only Nvidia outpaced MicroStrategy with a 180% YTD rise, underscoring the unique impact of BTC price movements on MicroStrategy’s valuation.
MicroStrategy vs Tech Giants: 2024 Performance Comparison. Source: MSTR Tracker MicroStrategy Outperforms Apple, Tesla, and Amazon
MicroStrategy stock has outpaced major tech giants like Apple, Amazon, and Tesla. As of 2024, its YTD growth exceeded Apple by 21%, Amazon by 24%, and Tesla by 6%.
Notably, despite being primarily a technology company offering analytics solutions, MicroStrategy’s performance has closely mirrored Bitcoin’s price movements. Consequently, analysts emphasize that this connection remains a double-edged sword. Market fluctuations in Bitcoin directly affect MicroStrategy stock.
Charts from MSTR Tracker highlight MicroStrategy’s position as a hybrid technology and crypto-centric stock, allowing it to outshine traditional tech firms.
Bitcoin Dependency Poses Volatility Risks
MicroStrategy’s focus on Bitcoin also brings significant risks. Specifically, a downturn in Bitcoin price could quickly reduce its market value and stock performance. With a net asset value premium of 3.3x, the stock reflects speculative investor interest.
As Bitcoin approaches the $100,000 mark, some analysts note the potential for increased profit-taking. However, data from CoinMarketCap shows that profit-taking levels remain below historical peaks, indicating room for further price movements.
Chart illustrating Bitcoin’s price increase over the past year, nearing the $100,000 milestone. Source: CoinMarketCap Market Cap Surpasses $100 Billion, Approaching Intel
Notably, On Nov. 19, MicroStrategy reached a market capitalization of $100 billion, driven by its BTC-focused strategy. Analysts project that the company may soon exceed Intel’s $102 billion market cap, as of Nov. 20.
In addition, CEO Michael Saylor recently announced his plans to present a Bitcoin strategy to Microsoft’s board of directors. His approach also aligns with the company’s goal of integrating Bitcoin as a core financial asset.
“The activist that put that proposal together contacted me to present to the board, and I agreed to provide a three-minute presentation — that’s all you’re allowed — and I’m going to present it to the board of directors,”
said Saylor in a Nov. 19 X Spaces hosted by VanEck.
Bitcoin as a National Asset: Discussion with Lummis and Saylor. Source: VanEck
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