MicroStrategy has surpassed Microsoft in terms of cumulative stock gains since 1999, with an increase of over 1,500%, primarily due to its massive investment in Bitcoin.
The MicroStrategy stock reached a 25-year high, climbing 7% to $236, rapidly approaching a market capitalization of $50 billion.
MicroStrategy has become the largest institutional holder of Bitcoin, owning 252,220 BTC (approximately $17 billion), which represents over 1% of the total Bitcoin supply.
The Success of MicroStrategy’s Bet on Bitcoin
MicroStrategy, the technology company led by Michael Saylor, has officially surpassed Microsoft in terms of cumulative stock gains since 1999, fully benefiting from its massive investment in Bitcoin. With an increase of over 1,500% during this period, MicroStrategy now exceeds Microsoft’s 1,460% gains, highlighting the significant financial impact of its Bitcoin-focused strategy.
MicroStrategy’s Bitcoin Bet Pays Off
On October 25, MicroStrategy stock reached a 25-year high, rising 7% to $236. This upward movement is part of a six-week bullish trend fueled by the company’s unique positioning as the largest Bitcoin holder among publicly traded companies.
While Microsoft considers a proposal to add Bitcoin to its balance sheet, MicroStrategy has seen a spectacular increase in its valuation, a trend that illustrates the growing appeal of companies that have integrated Bitcoin into their financial strategies.
Outperforming the S&P 500 Giants
Over the past five years, MicroStrategy (MSTR) stock has outperformed all companies in the S&P 500 index, attracting the attention of analysts and investors. The chart below shows that MicroStrategy has recorded a cumulative increase of 1,570% since its introduction on Nasdaq, surpassing Microsoft’s 1,467%.
In comparison, MicroStrategy’s stock performance appears even more exceptional, as it is largely due to the strategic acquisition of Bitcoin made in 2020 in a context of stagnating revenues from its core software business.
An Unprecedented Accumulation of Bitcoin
Since launching its Bitcoin acquisition strategy, MicroStrategy has become the largest institutional holder of BTC. In September, the company added an additional 7,420 BTC for a total of $458.2 million, bringing its total holdings to 252,220 BTC, or nearly $17 billion at current prices. This represents over 1% of the total Bitcoin supply that will ever be mined, a market position that strengthens its resilience and attractiveness to investors.
Next Step: $50 Billion Market Capitalization
The recent surge in MicroStrategy stock has propelled its market capitalization to $43.35 billion, ranking it as the 477th most valuable company in the world. With only 8% away from the symbolic $50 billion goal, MicroStrategy is on track to consolidate its position among the giants of the technology and financial sectors.
Rapidly Growing Transaction Volume and Expanding Net Asset Value
In 2024, MicroStrategy’s transaction volume has experienced a notable increase, reaching up to 17.65% of Nvidia’s volume in October, with a peak on October 11th where MSTR stock recorded a volume of 30 million compared to Nvidia’s 170 million.
As Bitcoin approaches $68,000, MicroStrategy’s net asset value (NAV) continues to grow, reaching a nearly threefold premium, its highest level since 2021. This increase in net asset value combined with a growing market capitalization and increasing transaction volumes could be indicators of bullish trends for MicroStrategy’s stock in the months and years to come.
MicroStrategy, with its Bitcoin-based model, embodies one of the most significant financial transformations in recent years.
