As Bitcoin approaches $100K, MicroStrategy stock is up 94% YTD.
MicroStrategy, the largest publicly traded Bitcoin corporate owner, saw its stock up 94% year-to-date (YTD), driven by Bitcoin's rally to $97,000.
With a balance sheet of 331,200 bitcoins (BTC) valued at around $32 billion, MicroStrategy has $15.51 billion in unrealized profits, according to Dropstab data.
According to the MSTR Tracker performance comparison chart, which compares MicroStrategy to other major tech stocks, NVIDIA has outperformed MSTR by 180% YTD.
The rise of microstrategy stocks reflects the increasing integration of cryptocurrencies into traditional finance and growing investor interest in Bitcoin-backed stocks.
A chart showing the portfolio value of MicroStrategy's BTC holdings and $15 billion in unrealized profits. Source: Dropstab
RELATED: The Microstrategy Market Is On High Intel.
Performance above crypto
In the year Despite the surprisingly good performance of the BTC price rally in 2024, MicroStrategy's stock has outperformed the year as shown in the performance comparison chart below.
MicroStrategy's year-to-date performance has outperformed major tech stocks, including Apple by 21 percent, Amazon by 24 percent and Tesla by 6 percent.
As a BTC proxy and technology company, MicroStrategy's enterprise analytics business continues to perform well in close proximity to BTC. Still, this assessment could change quickly in the event of a crypto market crash.
A performance comparison with a chart of common benchmarks shows that MSTR stock is up 94% YTD. Source: MSTR Tracker
Related: MicroStrategy Increases Note Sales to $2.6B for Bitcoin Purchases
The dangers of overconfidence in BTC
Despite its strong performance, the microstrategy's reliance on Bitcoin exposes it to market volatility. A significant decline in the price of Bitcoin can quickly destroy a company's value and stock price.
The company's net asset value premium, currently at 3.3x, reflects speculative enthusiasm, which could indicate potential volatility.
As the price of BTC nears $100,000, some analysts warn that profitability may be ahead as profitability “remains below historic highs.”
Chart showing BTC price increase over the year as it nears $100,000. Source: CoinMarketCap
Related: Michael Saylor to Put Microsoft Board on Bitcoin Buying Strategy
The micro-strategy of the set is greater than the intel
Microstrategy's market capitalization surpassed $100 billion on November 19. Analysts expect further gains as the company's bitcoin acquisition strategy accelerates.
Given this milestone, the de-facto BTC fund with a market cap of $102 billion is on track to overtake chip maker Intel's market cap on November 20.
CEO Michael Saylor recently announced that he had the opportunity to present a three-minute pitch to Microsoft's board of directors about the benefits of investing in Bitcoin.
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