MicroStrategy overtakes Microsoft in all-time stock gains as Bitcoin bet pays off
2024.10.25 09:55
MicroStrategy’s bet on Bitcoin is paying off handsomely as its stock soared more than 7% on Oct. 25, marking a new 25-year high at $236.
This was a continuation of a six-week rally for the world’s largest corporate Bitcoin holder, which has seen its share surpass Microsoft’s as the tech giant is set to vote on a proposal to publicly assess adding Bitcoin (BTC) to its balance sheet.
“MicroStrategy is soaring to a new all-time high!” observed crypto community Crypto Coin Coach in a post on X, in response to the software company’s share price movement on Oct. 24.
“Crushing every company without Bitcoin on their balance sheet.”
MSTR/USD monthly chart. Source: TradingView
MicroStrategy stock overtakes Microsoft in gains
Over the past five years, MicroStrategy stock has outperformed every company in the S&P 500 index, fueling market expectations for continued bullish momentum thanks to its BTC holdings.
The latest rally has seen the all-time performance of the software company’s stock overtake that of Microsoft, as shown in the chart below.
MicroStrategy has outperformed Microsoft since 1999 its share rallying approximately 1,570% since its Nasdaq listing compared to MSFT’s 1,467% ascent in their respective US dollar pairs.
MSRT/USD vs. MSFT/USD monthly chart. Source: TradingView
MicroStrategy’s gains in recent years can be attributed to its Bitcoin buying strategy, which has earned the tag of the largest corporate BTC holder in the world. The Michael Saylor-led company began buying and holding Bitcoin in 2020 as revenue from its software business eased.
In its latest purchase, the company acquired approximately 7,420 BTC for approximately $458.2 million in cash between Sept. 13 and Sept. 19, bringing its holdings to 252,220 Bitcoin worth nearly $17 billion at current prices.
This represents over 1% of all the Bitcoin that will ever be mined.
Related: MicroStrategy set for gains; ‘don’t fear the premium,’ analyst says
MSTR marches toward $50B market cap
MicroStrategy’s soaring stock is driving up its market value, reflecting heightened investor enthusiasm.
The latest rally has seen the stock’s market capitalization reach $43.35 Billion making MicroStrategy the 477th most valuable company in the world by market value, as per Companies Market Cap data. This is only 8% away from the $50 billion market cap valuation.
MSTR market cap between 1998 and 2024. Source: Companies Market Cap
Meanwhile, MSTR’s trading volume has continued to climb against Nvidia in 2024, reaching a high of 17.65% of NVDA’s volume in October. This was achieved on Oct. 11 when MicroStrategy saw a 30 million trading volume against NVD’s 170 million, according to data from Investing.com.
MSTR Trade Volume as Percentage of NVDA. Source: Investing.Com
Similarly, MicroStrategy’s net asset value (NAV) has continued to expand once again as Bitcoin price hovered around $68,000, putting the NAV premium at almost 3, the highest level since early 2021, according to data from MSTR tracker.
Increasing market value and trading volumes alongside a price rally could be indications of a continued uptrend for MicroStrategy’s stock over the coming months and years.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
