MicroStrategy Outperforms S&P 500: Bitcoin Strategy Fuels 509% Growth!

In 2024, MicroStrategy’s market has soared by an impressive 509.12%, outperforming every S&P component. This exceptional growth highlights the success of the Bitcoin strategy led by Michael J. Saylor, Executive Chairman and co-founder of the company.

However, despite the impressive numbers, doubts remain about the long-term sustainability of this approach. Let’s break down the details.

MicroStrategy’s Strong Performance This Month

This month alone, MicroStrategy’s market has increased by at least 84.63%. Just last week, it grew by nearly 22.13%. On November 21, the 24-hour trading volume hit a peak of $4.6 billion, the highest for the month. Between November 18 and November 21, the daily volume surged from $1.42 billion to $4.6 billion, a massive 223.94% jump.

However, the rise wasn’t without some volatility. On November 21, the price fell sharply from its monthly high of $536.31 to $397.01 in a single day. But by November 22, buyers regained control, pushing the price back up to $421.88, even though the 24-hour volume dropped from $4.6 billion to $2.73 billion.

MSTR Beats Meme Stocks

Experts are paying attention to MicroStrategy’s remarkable performance, noting that MSTR has outperformed many popular meme stocks in terms of 24-hour trading volume.

The company’s strategy of issuing debt to buy Bitcoin has been key to its success. MicroStrategy now holds over 331,200 BTC tokens. This month alone, it has purchased 78,980 BTC, including 27,200 on November 11 and 51,780 on November 18.

Bitcoin as a Core Asset

What makes MicroStrategy’s approach unique is that its Bitcoin investments are not tied to its main business. While the company’s core business has been shrinking for over a decade, its Bitcoin holdings have been thriving. Data shows that the Bitcoin premium for MSTR has now returned to levels last seen during the 2021 bull run.

Notably, unlike Grayscale’s Bitcoin Trust (GBTC), MSTR has never seen its premium fall below zero.

MicroStrategy’s Convertible Note Strategy 

Recently, MicroStrategy issued $3 billion in convertible notes with a 0% coupon. These notes act like call options on MSTR stock, with a strike price of $672. Investors will only profit if MSTR stock rises significantly.

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Market Reactions: Revolutionary or Risky?

Opinions on MicroStrategy’s Bitcoin strategy are divided. Some market bulls see it as a revolutionary approach that has turned the company into a major market player. On the other hand, skeptics compare it to Ponzi schemes, questioning the long-term viability of such a strategy.

MicroStrategy’s Bitcoin strategy has made the company a key player in the market. Whether this will lead to long-term success or pose risks in the future remains to be seen.

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