MicroStrategy Surpasses Microsoft in All-Time Stock Gains Driven by Bitcoin
MicroStrategy has surpassed Microsoft in all-time stock gains, with shares increasing over 1,500% since 1999 compared to Microsoft's 1,460%. This growth is attributed to MicroStrategy's Bitcoin (BTC) investment strategy. On October 25, MicroStrategy's stock rose over 7%, reaching a 25-year peak at $236, part of a six-week rally.
As the largest corporate holder of Bitcoin, MicroStrategy has capitalized on BTC's rising value, positioning it ahead of Microsoft, which is considering adding Bitcoin to its balance sheet pending a shareholder vote. The crypto community acknowledged this milestone, noting MicroStrategy's significant performance compared to companies without Bitcoin holdings.
In the past five years, MicroStrategy (MSTR) has outperformed all S&P 500 companies, with shares climbing approximately 1,570% since its Nasdaq debut. Microsoft (MSFT) has gained around 1,467% during the same period. This success stems from MicroStrategy's BTC acquisition strategy led by CEO Michael Saylor, shifting focus from software revenue to Bitcoin accumulation since 2020.
The company's recent purchase of 7,420 BTC for about $458.2 million increased its total holdings to 252,220 BTC, valued at around $17 billion. This represents over 1% of all Bitcoin that will ever be mined, reinforcing its position as the top corporate BTC holder.
MicroStrategy's stock rally has raised its market capitalization to nearly $43.35 billion, ranking it as the 477th most valuable company globally. This figure is within 8% of a $50-billion market cap milestone.
Additionally, trading volume for MSTR has surged, rivaling tech giants like Nvidia. On October 11, MicroStrategy recorded a trading volume of 30 million, constituting 17.65% of Nvidia’s 170 million volume that day. The company's net asset value (NAV) has also increased alongside Bitcoin's price surge, reaching a NAV premium of nearly 3, the highest since early 2021.
This rise in trading volume, market value, and stock price reflects a bullish trend, indicating that MicroStrategy's momentum may continue. The company's dedication to Bitcoin supports its stock performance, leading investors to speculate on further increases if Bitcoin prices remain strong.
As the tech sector evolves and crypto adoption expands, MicroStrategy's approach serves as a case study on the influence of Bitcoin on corporate growth and valuation.