Markets
Beyond Bitcoin: How MicroStrategy Stock Beat the Crypto Market
- MicroStrategy stock outperformed BTC, mining stocks and Coinbase’s COIN.
- Despite more upside potential on the price charts, MSTR could be affected by BTC’s pullback.
MicroStrategy Stocks [MSTR] was apparently the best performing stock with Bitcoin [BTC] exhibition last week.
MSTR shares rose 34% last week and regained the $1,500 level, boosted by the recovery of BTC and the inclusion of MicroStrategy in the MSCI index. The rally extended into the current week and reached a high of $1,740, an additional +4% as of May 22.
Overall, MSTR’s remarkable double-digit performance eclipsed even Coinbase [COIN] and several other Bitcoin mining stocks.
MicroStrategy stock versus other BTC-related stocks
Shares of MicroStrategy posted 3.6 times more gains than those of Coinbase, the largest U.S. cryptocurrency exchange. [COIN] when the performance was adjusted on the weekly chart.
MSTR is up 22% over the past five trading days, compared to COIN’s 6% over the same period.
Interestingly, Bitcoin miner collectives also saw remarkable double-digit gains, but were slightly lower than MSTR during the same period.
Notably, Valkyrie Bitcoin Miners ETF [WGMI]which tracks top BTC mining stocks, including shares of Marathon Digital [MARA]posted gains of 12.8% over the past five trading days.
That said, MSTR eclipse COIN and overall BTC miner stocks over the last 5 trading sessions. It should be noted, however, that COIN’s performance has remained relatively subdued, in part due to the ongoing lawsuit with the US SEC.
MicroStrategy, under the leadership of its founder and CEO, Michael Saylor, has maintained its Bitcoin strategy.
So far in the second quarter, the company has added 122 BTC, bringing its total BTC war chest to 214,400 coins, worth over $15 billion based on current market prices.
Compared to the company’s current total of 17.7 million shares as of May 22, its BTC per share was around 0.01209 BTC.
But a large number of investors have flocked to MSTR, sometimes well above BTC, the underlying asset they seek exposure to.
But the allure of MSTR could be irresistible, especially compared to the performance of BTC. MSTR has outperformed BTC on a weekly, monthly, and year-to-date basis.
In May, MSTR was up 55% compared to 15% for BTC. Year-to-date, MSTR’s gains exceeded 140%, while BTC’s value was +58%.
This meant that MSTR holders got better returns than their BTC counterparts. So, what’s next for MSTR price?
What’s Next for MSTR Price?
Source: MicroStrategy Stock (MSTR), TradingView
On the daily chart, the next key bullish targets were the ATH of $1999 and $2300 based on the Fibonacci retracement tool (yellow). The bullish RSI (Relative Strength Index) reading indicated that the above bullish targets were achievable.
However, although MSTR has outperformed BTC on the price charts, a pullback from the king coin could erase some of the stock’s gains.
At the time of writing, BTC fell slightly below $70,000 after hitting the range high at $71,000, while MSTR traded at $1,650. MSTR’s continued rally could be derailed if BTC extends its retracement.