
In what will be a shocker for many, MicroStrategyโs big bet on Bitcoin is paying off, with its stock surging over 7% on Oct. 25, hitting a 25-year high of $236! This jump continues a six-week rally for the top corporate Bitcoin holder, even outpacing Microsoft, which is now set to vote on potentially adding Bitcoin to its balance sheet. Moreover, the firm is experiencing a remarkable surge in both stock value and trading volume relative to Nvidia (NVDA). With a year-to-date increase of over 240%, MSTRโs stock price has doubled in the past five weeks alone, now trading at $236. This rally brings MicroStrategyโs market cap close to $50 billion, only 1.5% of Nvidiaโs massive $3.44 trillion valuation.ย
Despite this, MicroStrategyโs trading volume reached 17.65% of Nvidiaโs in Octoberโan impressive milestone for a company with such a smaller market cap.
With MSTRโs rise one thing is clear Bitcoin is the way to get the maximum profit in the current volatile market.
A Closer Look at the Numbers
MicroStrategyโs trading activity has seen significant growth, hitting a record 17.65% of Nvidiaโs trading volume on October 11, with MSTR trading 30 million shares while NVDA trading 170 million. This trading volume surge is similar to its peak in 2021 when MSTR only reached 8% of Nvidiaโs volume on its best day. The rise in trading volumes, alongside MicroStrategyโs stock price rally, could indicate increased market enthusiasm and a potential uptrend.
Outperformance Against Nvidia and NAV Premium Increase
Interestingly, its year-to-date, MSTR has outpaced Nvidiaโs impressive 192% gain, with MicroStrategy up 1,800% since it adopted Bitcoin as a treasury asset in August 2020, compared to Nvidiaโs 1,150% rise. This performance highlights CEO Michael Saylorโs strategic commitment to Bitcoin, which continues to drive investor interest and boost the companyโs market position.
Meanwhile, MicroStrategyโs net asset value (NAV), calculated by dividing MSTRโs market cap by the value of its Bitcoin holdings, is nearing a premium of 3โthe highest since early 2021. With Bitcoin hovering around $60,000, MicroStrategyโs NAV premium reflects growing investor confidence in the firmโs Bitcoin-centered strategy.
Whatโs Next for MicroStrategy?
With MSTR just 8% shy of a $50 billion market cap, the stockโs continued rally and rising NAV premium could point to sustained investor interest in the companyโs Bitcoin-heavy approach. However, the surge in trading volume relative to Nvidia may also suggest a build-up of speculative interest. For now, MicroStrategyโs approach appears to resonate with investors, positioning the company as a unique player in both the tech and crypto scenario.
MSTRโs Bitcoin strategy and some portfolio shifts in recent months have paid them paid off, are you following the MSTR for portfolio management? Tell us.