Key Takeaways
- The stock of MicroStrategy reached an impressive 25-year peak of $245 prior to its Q3 earnings announcement.
- The MSTR/BTC Ratio achieved a historical high, indicating robust comparison to Bitcoin.
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MicroStrategy (MSTR) experienced a remarkable surge after the US market opened on Friday, climbing from approximately $235 to $245, marking its highest point in the last 25 years, according to Google Finance data. This increase comes ahead of the upcoming third-quarter earnings report, set for release next Wednesday.
As of this report, MSTR has settled around $242, yet it continues to outperform the S&P 500. Data reveal that MicroStrategy’s stock has surged by 286% year-to-date, while the S&P 500 has only appreciated roughly 37% during the same period.
In the past five years, MicroStrategy’s stock has experienced an astounding increase of 1,588%, significantly outperforming the S&P 500’s 94.18% return.
The stock performance of MicroStrategy often aligns with the broader cryptocurrency market, especially Bitcoin, due to the company’s close involvement with the leading crypto asset.
Based on information from the MSTR tracker, the MSTR/BTC Ratio, which tracks MicroStrategy’s stock value relative to Bitcoin’s market fluctuations, has reached an unprecedented high of 0.354. This suggests that the stock is performing exceptionally well compared to Bitcoin.
The company’s net asset value (NAV) has also shown improvement, with the NAV premium nearing 3, the highest recorded since early 2021.
As reported by CoinGecko data, Bitcoin has approached the key $69,000 mark after breaking back above $68,000 early Friday. Although it has since dipped below that threshold, it still outperforms the overall market.
MSTR is currently about 23% shy of its previous all-time high of $313 reached in March 2020, with a market capitalization of approximately $44 billion. If MicroStrategy’s strategy regarding Bitcoin proves effective, the stock price could see new heights in the future.
Since implementing this strategy, MicroStrategy has witnessed its stock surpass Bitcoin’s performance. It now stands as the world’s top corporate holder of BTC, boasting over 252,000 BTC valued at around $17 billion at current market rates.
The company remains committed to holding onto its Bitcoin assets, with plans to accumulate additional coins using various funding strategies.
As MicroStrategy’s Bitcoin reserves expand over time, so do its aspirations. CEO Michael Saylor envisions the company evolving into a preeminent Bitcoin bank, potentially attaining a trillion-dollar market valuation through savvy operations in the US capital markets.
