MicroStrategy, a business intelligence software firm, has seen a remarkable run on their shares, astoundingly racking up a 1,500% gain since 1999, better than Microsoft’s gains of 1,460% in the same timeframe. A recent 7% surge on October 25th propelled MicroStrategy’s stock to a 25-year high of $236. This comes in the midst of a six-week rally for MicroStrategy, the world’s leading corporate holder of Bitcoin. This rally led MicroStrategy’s stock performance to outpace that of Microsoft, just as the tech juggernaut is contemplating an assessment on adding Bitcoin to its balance sheet.
In the past half-decade, MicroStrategy’s stock has outperformed every other company listed in the S&P 500 index. This performance has stirred market speculation of more upward momentum fueled by its Bitcoin holdings. Since the company launched its Nasdaq listing in 1999, its shares have climbed 1,570%, compared to Microsoft’s ascent of 1,467%.
Significantly, MicroStrategy’s success in recent years can be credited to its Bitcoin acquisition strategy. This has earned MicroStrategy the distinction of being the world’s largest corporate holder of Bitcoin. The company, under the leadership of Michael Saylor, began buying and holding Bitcoin in 2020, as revenue from its core business began to taper off.
The company’s recent purchase included approximately 7420 BTC, costing around $458.2 million in cash. This puts MicroStrategy’s total Bitcoin holdings at 252,220 BTC, valued around $17 billion with current prices, which translates to over 1% of all the Bitcoins that will ever be mined.
The continued rally of MicroStrategy’s stock has inflated its market value, underscoring increased investor appetite. The company’s market capitalization has recently reached $43.35 billion, nearing the $50 billion market cap valuation, thereby elevating MicroStrategy to the 477th-most valuable company in the world by market value.
Underlining the company’s success, MicroStrategy’s stock trading volume is on an upwards trajectory against Nvidia and its net asset value (NAV) has also continued to rise in line with Bitcoin’s upward price trend. These factors could be predictors of a continued upward trend for MicroStrategy’s stock in upcoming months and years.