MicroStrategy Stock Surges Further as Big Bitcoin Buys Pay Off

Investopedia
21 Nov 2024

Key Takeaways

  • MicroStrategy shares surged again Wednesday, lifted by bitcoin's recent record-high.
  • The technology company is the largest corporate holder of bitcoin, with about $31 billion worth in its portfolio.
  • MicroStrategy stock is up nearly 700% this year, even outperforming bitcoin itself.

MicroStrategy (MSTR) shares rocketed higher again Wednesday, as the largest corporate holder of bitcoin reaps the benefits of record high prices for the cryptocurrency. 

The price of bitcoin hit a record of more than $94,000 on Tuesday, and MicroStrategy has been buying a ton of it. Over a six-day span earlier this month, the technology company acquired 51,780 bitcoin for roughly $4.6 billion, according to a recent regulatory filing, even with some prices already having crossed the $90,000 threshold.

All told, as of Sunday MicroStrategy held 331,200 bitcoin, which is worth about $31 billion at current prices. In fact, its shares have outperformed bitcoin this year, soaring nearly 700% this year as bitcoin has a bit more than doubled. Its stock, which has doubled this month, surged a further 15% to $495.98 in recent trading. 

Notably, MicroStrategy still holds far less than the 474,627 bitcoin held as of yesterday by BlackRock's iShares Bitcoin Trust (IBIT), which is the largest bitcoin exchange-traded fund (ETF).

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