MSTR STOCK SURGES PAST $1,000, OUTSHINES MAJOR INDEXES 

Could Bitcoin be the catalyst for MSTR’s impressive annual performance? MicroStrategy, co-founded by Michael Saylor and known for being the largest corporate investor in Bitcoin, has experienced a dramatic surge in its stock price over the recent period.

This surge has led MSTR to significantly outdo the major US stock market indices, likely influenced by its substantial investment in Bitcoin.

MSTR Leads Over S&P 500

Two months into the year, the US stock market is demonstrating encouraging signs. The S&P 500, a key benchmark that tracks the 500 largest US publicly listed companies, has seen an over 8% increase, reaching a new all-time high of more than 5,100.

Similarly, the Dow Jones Industrial Average has risen by 3.6% year-to-date as of the last Friday’s close. The Nasdaq Composite, home to the largest tech corporations, has posted a modest gain of just over 1% in the same period.

Yet, MicroStrategy, listed on the Nasdaq, has led the pack with its performance. Since the beginning of the year, MSTR’s stock has rocketed by over 50% and surpassed the $1,000 mark last week. This puts MicroStrategy’s shares near their peak price of $1,300 seen in February 2021.

Bitcoin: The Driving Force?

The stark difference in performance between MicroStrategy and other US stocks can likely be attributed to Bitcoin, the largest cryptocurrency by market capitalization. In a move that caught many off guard and stirred debate, MicroStrategy began adding Bitcoin to its balance sheet in August 2020.

Starting with several million-dollar purchases, the company continued to accumulate Bitcoin aggressively over the next three and a half years, regardless of market fluctuations. Saylor, who later transitioned from CEO to a more Bitcoin-focused role, consistently advocated for the cryptocurrency even as its value dropped from $69,000 to below $20,000 within a year.

MicroStrategy’s persistent buying increased its Bitcoin holdings to an astonishing 193,000 BTC, according to the latest figures. The company invested over $6 billion for this digital asset haul, but the recent rise in Bitcoin’s price has led to a substantial unrealized profit of $6 billion for MicroStrategy. Essentially, the firm has seen its Bitcoin investment double in value over three years, showcasing the effectiveness of a dollar-cost-averaging strategy.

With the largest direct investment in Bitcoin of any company, it’s logical to conclude that MicroStrategy’s stock performance is closely tied to that of Bitcoin, which likely explains MSTR’s recent surge to a multi-year high.

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