Leveraged Bitcoin: MicroStrategy’s Stock Price Outclasses BTC

If you thought the Bitcoin (BTC) price has risen sharply this year, you will be amazed by the performance of MicroStrategy’s stock. The company is known for its bold Bitcoin strategy, where it borrows capital to add as many Bitcoins to its balance sheet as possible.

This has more than paid off so far: the share price has undergone an impressive rally, leaving Bitcoin in the dust.

252,220 Bitcoins on the balance sheet

When you think of MicroStrategy, you think of Bitcoin. MicroStrategy was the very first listed company to invest in Bitcoin in 2020. The company even announced that it would continue buying Bitcoin as a strategic reserve to protect itself against the depreciating dollar.

The American software supplier had not lied a word about this. The company has been accumulating Bitcoins at high speed and currently has an unprecedented 252,220 Bitcoins on its balance sheet. Bitcoin bull Michael Saylor’s company is by far the largest listed Bitcoin holder.

With a current BTC price of approximately $71,000, this has an astronomical value of almost $18 billion.

MicroStrategy share price outclasses Bitcoin

Last week you could read that the tech giant’s share price had risen to its highest level in 25 years of $230. But the price is now even more than 10% higher at more than $255.

By 2024, the share price has already risen by almost 273%. At the same time, Bitcoin has managed to add more than 68% to its value. MicroStrategy therefore performs more than 4 times better than Bitcoin.

If we delve further into the archive, the difference in power only becomes greater. Over the past year – so since October 29, 2023 – MicroStrategy has outperformed Bitcoin by 5x. While Bitcoin has slightly more than doubled in value, MicroStrategy’s stock has skyrocketed by around 508%.

With MicroStrategy’s massive BTC holdings, the stock acts as an alternative for investors to gain exposure to the digital currency. But the stark differences in performance highlight how the Nasdaq-listed company’s shares effectively represent leverage on Bitcoin.

The company uses loans to finance its purchases of Bitcoin, which has typically caused its stock price to move more strongly than Bitcoin itself. When the price of Bitcoin rises, MicroStrategy benefits from this increased profit through leverage.