Highlights
- Microstrategy extended its weekly gains to more than 22% while Bitcoin surged by 13% in the same period.
- Due to Bitcoin exposure, Microstrategy has outperformed tech giants like Nvidia in recent market rally.
- MSTR's success has inspired other companies, including Japan's Metaplanet, to adopt similar strategies by accumulating Bitcoin.
Microstrategy, the world’s largest corporate holder of Bitcoins, witnessed its MSTR share price surging by 15% on Monday’s trading session and giving a close at $1,611. This rally follows the Bitcoin price pump to $65,000 as BTC registers double-digital gains just over the last three trading sessions.
MicroStrategy Outperforms Bitcoin
Microstrategy (MSTR) has outperformed Bitcoin at every stage throughout the last year and continues to do so even today. While the Bitcoin price is up by 13% on the weekly chart, the MSTR share has gained more than 22% in the last five trading sessions.
Since the beginning of 20224, the MSTR share price has gained by a massive 135% while Bitcoin has gained 44% during the same time. Similarly, on the yearly chart, the MSTR stock is up by a massive 258%.
Of course, this current outperformance of MicroStrategy comes due to the company’s massive Bitcoin holdings on its balance sheet. Furthermore, MicroStrategy recently announced the MSTR stock split in the ratio of 10:1 to make the stock accessible to investors after its massive run-up over the past year. Ever since MicroStrategy decided to hold Bitcoins as part of its reserves, MSTR has outperformed some of the top tech giants on Wall Street, including Nvidia (NASDAQ: NVDA).
To outperform $NVDA – get on the #Bitcoin Standard. pic.twitter.com/Dp361BFfPi
— Michael Saylor⚡️ (@saylor) July 15, 2024
Amid the recent recovery in the crypto market, supported by a strong rally on Wall Street, other crypto stocks like Coinbase (COIN) and Marathon Digital (MARA) have delivered strong gains in recent times.
Also Read: Coinbase, MicroStrategy, and Crypto Stocks Record Weekly Upswing
Crypto firms Adopt the Bitcoin Playbook
Following MicroStrategy’s success other small and mid-tier companies are also considering having Bitcoin holdings on their balance sheet and thus boost their share price. Metaplanet, also popular as Japan’s MicroStrategy, has accumulated 225 Bitcoin in the last two months buying during the BTC price dips. During this period, the share price of Metaplanet has surged by 500%.
“We’re seeing kind of post what’s happened with MicroStrategy, a whole bunch of particularly midcap companies, even nonprofits, come to us and say, ‘Hey look, we saw your announcement about your new registered investment advisor separately managed accounts’. They love that model for holding crypto,” said Abra CEO Bill Barhydt during a recent CNBC interview.
Also Read: Japan’s Metaplanet Buys Another Bitcoin Dip
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