MicroStrategy Stock Has Grown 94% Year-to-Date (YTD) in 2024, Fueled by Bitcoin's Rally Above $97,000

The company holds 331,200 BTC, now valued at approximately $32 billion, with unrealized gains of $15.51 billion

MicroStrategy stock has seen an impressive 94% growth year-to-date (YTD) in 2024, largely driven by Bitcoin’s rally above $97,000. The company holds 331,200 BTC, which is now valued at approximately $32 billion, showing unrealized gains of $15.51 billion, according to data from Dropstab.

This year, Bitcoin’s increasing integration into finance has boosted demand for Bitcoin-backed equities. As a major corporate Bitcoin holder, MicroStrategy has played a key role in this trend.

Among major tech companies, only Nvidia outpaced MicroStrategy with a 180% YTD rise, highlighting the unique impact of BTC price movements on MSTR, according to data from MSTR Tracker.

MicroStrategy Outperforms Apple, Tesla, and Amazon

MicroStrategy stock has outperformed major tech giants like Apple, Amazon, and Tesla. Its YTD growth exceeded Apple by 21%, Amazon by 24%, and Tesla by 6%, as of 2024.

Interestingly, despite being primarily a technology company that offers analytics solutions, MicroStrategy’s performance has closely followed Bitcoin’s price movements. As a result, analysts note that this connection also creates a double-edged impact. Market fluctuations in Bitcoin directly influence MicroStrategy stock.

Charts from MSTR Tracker show how MicroStrategy is positioned as a hybrid technology and crypto-centric stock, enabling it to outshine traditional tech firms.

Bitcoin Dependency Poses Volatility Risks

However, MicroStrategy’s focus on Bitcoin also carries substantial risks. In particular, a downturn in the Bitcoin price could swiftly erode its market value and stock performance. The stock also reflects speculative investor interest with a net asset value premium of 3.3x.

As Bitcoin approaches the $100,000 mark, some analysts anticipate increased profit-taking. Nevertheless, data from CoinMarketCap shows that profit-taking levels are still below historical peaks, suggesting potential for further price movements.

Market Cap Surpasses $100 Billion, Approaching Intel

Significantly, On Nov. 19, MicroStrategy reached a market capitalization of $100 billion, thanks to its BTC-centric strategy. Analysts expect the company to soon overtake Intel, which had a market cap of $102 billion, as of Nov. 20.

Moreover, CEO Michael Saylor recently announced his plans to present a Bitcoin strategy to Microsoft’s board of directors, as the company also aims to integrate BTC as a core financial asset.

“The activist that put that proposal together contacted me to present to the board, and I agreed to provide a three-minute presentation — that’s all you’re allowed — and I’m going to present it to the board of directors,”

said Saylor in a Nov. 19 X Spaces hosted by VanEck.