Tech
MicroStrategy Stock Outperforms US Tech Giants: Thanks to Bitcoin?
- MicroStrategy has outperformed other major stocks in terms of price performance.
- At the time of writing, the price of BTC is holding at the $65,000 level.
Bitcoin [BTC] The recent rally has created a sense of optimism in the market in recent days. In addition to altcoins, cryptocurrency-related companies have also gained.
MicroStrategy stock outperforms all
In particular, MicroStrategy shares have seen a significant rally. The company’s strategic decision to accumulate Bitcoin as a key component of its reserves has proven to be exceptionally profitable.
As a result, MicroStrategy (MSTR) shares have outperformed tech titans like Nvidia, Tesla, and Microsoft. The world’s largest corporate Bitcoin holder saw its stock price surge by a remarkable 15% on Monday, closing at $1,611.
This impressive rally coincided with the price of Bitcoin rising to $65,000.
MicroStrategy has significantly outperformed Bitcoin over the past year, showing a remarkable growth trajectory. While Bitcoin has seen a modest 13% price increase on a weekly chart, MSTR stock has increased by over 22% over the same period.
The performance disparity becomes even more pronounced when considering the broader time frame. Since the start of 2024, MSTR’s stock price has skyrocketed by an astonishing 135%, eclipsing Bitcoin’s 44% gain over the same period.
Additionally, on a year-to-date basis, MSTR stock boasts an impressive increase of 258%.
A primary catalyst for MicroStrategy’s exceptional performance is its large Bitcoin holdings. The company’s strategic investment in Bitcoin has proven to be highly profitable, generating significant shareholder value.
To improve accessibility and expand its investor base, MicroStrategy recently announced a 10-for-1 stock split. This corporate action is designed to make MSTR stock more accessible to both existing and prospective investors, including employees.
The stock split is expected to go into effect on August 1, with shares being distributed after the stock market close on August 7.
Michael Saylor boasts
Michael Saylor recently praised MicroStrategy’s stellar performance in a tweet, showing a chart that showed a stunning 1,203% increase in the stock price since August 10, 2020.
Its growth has outpaced that of tech giants such as Nvidia (1,050%), Tesla (167%), Amazon (22%) and Apple (108%).
Attributing MicroStrategy’s success to its Bitcoin strategy, Saylor encouraged companies aiming to rival Nvidia to adopt a similar approach. The company has amassed a Bitcoin treasure trove worth $7.538 billion by aggressively acquiring the cryptocurrency since 2020.
To fuel these purchases, MicroStrategy has raised significant funds through debt offerings. In an effort to expand its Bitcoin holdings, the company successfully raised a June debt offering from $500 million to $700 million.
Source: X
At press time, BTC was trading at $65,321.79 and trading volume was down 0.91% over the past 24 hours.
Source: Santiment