MicroStrategy’s Bitcoin investment paid off in a big way on October 25, when the stock surged more than 7% to $236, its highest price in 25 years.
This was the continuation of a six-week rally for the world’s largest Bitcoin holding. Shares appear to surpass Microsoft as the tech giant is set to vote on a proposal to publicly evaluate adding Bitcoin (BTC) to its balance sheet.
“MicroStrategy is hitting an all-time high!” This was the observation made by crypto community Crypto Coin Coach in a post on X on October 24 in response to the software company’s stock price fluctuations.
“It trumps every company that doesn’t have Bitcoin on its balance sheet.”
MSTR/USD monthly chart. source: TradingView
MicroStrategy stock surpasses Microsoft in profits
Over the past five years, MicroStrategy stock has outperformed every company in the S&P 500 index and fueled market expectations of continued bullish momentum thanks to its BTC holdings.
As you can see in the chart below, the recent rally saw the software company’s stock price surpass Microsoft’s stock to record highs.
MicroStrategy outperformed Microsoft with a share gain of about 1,570% compared to MSFT’s 1,467% rise in the greenback pair, which has risen about 1,570% since listing on the Nasdaq since 1999.
MSRT/USD vs MSFT/USD monthly chart. source: TradingView
MicroStrategy’s profits in recent years have been attributed to its Bitcoin purchasing strategy, which has earned it the title of the world’s largest corporate BTC holder. The company, led by Michael Saylor, began buying and holding Bitcoin in 2020 as revenue from its software business declined.
In its most recent purchases, the company acquired about 7,420 BTC for about $458.2 million in cash between September 13 and September 19, bringing it to hold 252,220 bitcoins, worth about $17 billion at current prices.
This represents more than 1% of all Bitcoins to be mined in the future.
Related: MicroStrategy profits. ‘Don’t be afraid of premiums,’ says analyst.
MSTR Marches Toward $50 Billion Market Cap
MicroStrategy’s stock surge reflects growing investor enthusiasm, boosting its market valuation.
The recent rally has brought MicroStrategy’s market capitalization to $43.35 billion, making it the 477th most valuable company in the world by market value, according to company market capitalization data. This is only 8% different from the market capitalization of $50 billion.
MSTR market capitalization from 1998 to 2024. Source: Company market capitalization
Meanwhile, MSTR’s trading volume continued to increase compared to Nvidia in 2024, reaching a peak of 17.65% of NVDA’s trading volume in October. This was achieved on October 11, when MicroStrategy recorded 30 million trading volumes compared to NVD’s 170 million, according to data from Investing.com.
MSTR volume as a percentage of NVDA. Source: Investing.Com
Likewise, with the price of Bitcoin hovering around $68,000, MicroStrategy’s net asset value (NAV) continues to expand once again, with the NAV premium reaching nearly 3, the highest level since early 2021, according to data from the MSTR tracker. .
Increasing market value and trading volume along with rising prices could indicate a continued upward trend for MicroStrategy stock in the coming months and years.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.