MicroStrategy Stock Rallies as Bitcoin Strategy Pays Off

Key Points

MicroStrategy shares surged on Wednesday, driven by bitcoin's record-breaking performance.

The company holds the largest corporate bitcoin portfolio, valued at approximately $31 billion.

Year-to-date, MicroStrategy stock has soared nearly 700%, outpacing bitcoin’s own gains.

MicroStrategy (MSTR) continues to see its stock skyrocket, benefiting from the recent surge in bitcoin prices. As the largest corporate holder of the cryptocurrency, the company is reaping significant rewards from bitcoin's record high of over $94,000, reached earlier this week.

Earlier this month, MicroStrategy made a massive investment, purchasing 51,780 bitcoin for around $4.6 billion over just six days, even as prices exceeded $90,000. As of Sunday, the company’s bitcoin holdings totaled 331,200, valued at roughly $31 billion at current prices.

MicroStrategy’s bold bitcoin strategy has paid off, with its stock price rising nearly 700% this year—far outpacing bitcoin, which has more than doubled over the same period. The company’s shares, which have doubled this month alone, jumped another 15% on Wednesday, reaching $495.98 during trading.

Despite its impressive holdings, MicroStrategy's bitcoin portfolio is still smaller than BlackRock's iShares Bitcoin Trust (IBIT), the largest bitcoin exchange-traded fund (ETF), which holds 474,627 bitcoin as of yesterday.

MicroStrategy’s aggressive approach to bitcoin investment has positioned it as a key player in the cryptocurrency space, with its stock reflecting the massive gains tied to the asset's ongoing rally.