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.
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 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: CoinMarketCapMarket 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.
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