Comparison of MicroStrategy and Bitcoin Performance in 2024

MicroStrategy, a company heavily invested in Bitcoin, holds nearly 2% of the total bitcoin supply, making it a significant player in the cryptocurrency market. As a result, the performance of MicroStrategy is closely tied to Bitcoin. The link between the two is clear, with approximately 38% of MicroStrategy’s market capitalization coming from its bitcoin holdings. This relationship means that as Bitcoin performs well, MicroStrategy’s stock price tends to rise, reflecting the gains seen in the cryptocurrency.

CEO Michael Saylor has been a key figure in MicroStrategy’s move to acquire bitcoin, with the company accumulating a significant amount of the cryptocurrency by the end of November 2024. This accumulation, exceeding that of other major holders by 15 times, has positioned MicroStrategy as a powerhouse in the world of crypto investing.

Bitcoin itself has shown an impressive surge in value in 2024, doubling in price from around $44,000 to nearly $100,000 per bitcoin. Throughout the year, Bitcoin has experienced significant single-day gains, raising questions about how MicroStrategy’s stock price has paralleled these milestones.

On the top 10 days of notable price gains for bitcoin in 2024, ranging from 6.5% to 12.0%, MicroStrategy largely mirrored these successes. On nine out of the ten biggest days for bitcoin, MicroStrategy also saw substantial gains, sometimes even surpassing the cryptocurrency in performance.

For investors interested in gaining exposure to Bitcoin’s potential price movements without investing directly in the digital asset, MicroStrategy offers an intriguing alternative. A MicroStrategy ETF, like Defiance’s MSTX, provides a leveraged option for investors to engage with the company and indirectly benefit from the growth of Bitcoin. This illustration of how MicroStrategy and Bitcoin are interconnected underscores the various ways to tap into the cryptocurrency market.