Microstrategy's Stock Climbs 185% Year-to-Date, Other Firms Test the Holding Strategy

On Tuesday, while bitcoin (BTC) dipped more than 2% against the U.S. dollar, shares of the business intelligence firm Microstrategy (MSTR) soared over 6%

Microstrategy (Nasdaq: MSTR) stock soared on Tuesday, rising over 6% from the previous day, while bitcoin (BTC) dipped more than 2% against the U.S. dollar.

The business intelligence firm’s stock has outperformed bitcoin’s performance this year, with MSTR shares climbing over 185% since January, compared to bitcoin’s 47% increase.

Back on June 30, 1998, MSTR stock was priced at $18. Today, MSTR shares have skyrocketed over 988%, reaching $191 per share. Microstrategy is a business intelligence software company, founded by Michael Saylor in 1989, which helps organizations optimize their data-driven decision-making. Although its stock surged to $139 in January 2000, from October 2000 to September 2020, MSTR stayed below $20 per share.

Microstrategy’s bitcoin (BTC) reserve strategy started making waves during bitcoin’s bull run in 2021. By January of that year, MSTR shares surged past the $75 mark. Fast forward to the end of Oct. 2021, and the company’s stock hovered around $72, only to dip back below $20 by May 2022. In the last 12 months, MSTR has climbed 495%, with 28% of those gains stacking up in just the past six months.

Meanwhile, Coinbase (Nasdaq: COIN) has experienced a different trajectory. COIN is down 4.4% for the year and has dropped 34% over the last six months. Despite today’s 2.1% decline, it’s gained 1.33% over the past 30 days.

MSTR has also outpaced its bitcoin holdings, which have appreciated 57% against the U.S. dollar. Microstrategy’s BTC stash now totals $15.61 billion. The company’s shares trade at a premium to its BTC holdings due to several factors, including offering leveraged exposure to bitcoin, option strategies, and accessibility to traditional finance (tradefi) investors.

Similarly, several mining stocks have experienced boosts like MSTR. MARA’s shares have jumped 860% over the last five years, and MARA Holdings (Nasdaq: MARA) has climbed 107% in the past 12 months. However, year-to-date, the crypto mining firm’s stock has slid just over 40%. Recently, MARA adopted Microstrategy’s playbook, choosing to accumulate bitcoin for reserves while holding onto the BTC it mines instead of selling it.

Across the globe, Metaplanet Inc., (listed on the Tokyo Stock Exchange) has also embraced Microstrategy’s bitcoin-buying strategy, with similar stock success. Over the past 12 months, Metaplanet shares have surged 397%, with a year-to-date increase of more than 452%. Over the last six months, the Tokyo-listed stock has jumped 168% against the U.S. dollar. Metaplanet recently added 108.786 bitcoin to its reserves for $6.7 million, bringing its total stash to 639.503 bitcoin, now valued at $40.36 million.

How do you view the performance of MSTR, along with corporate bitcoin holders like MARA and Metaplanet? Let us know what you think about this subject in the comments section below.

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