In hindsight, MicroStrategy’s bold move of heavily investing in Bitcoin during 2024 appears to have been a lucrative decision. According to findings by Galaxy Research, the company’s stock, MSTR, emerged as the top performer globally in 2024, showcasing a remarkable 358% annual increase.
Notably, MSTR shared this prestigious position with Palantir Technologies [PLTR], a software enterprise known for providing data analytics solutions to companies operating in the cryptocurrency space.
MicroStrategy’s Strategic Bet on Bitcoin
The remarkable success story of MSTR in 2024 did not catch many by surprise. The firm’s founder and former CEO, Michael Saylor, is a staunch Bitcoin advocate, firmly believing in the cryptocurrency’s superior performance over the majority of U.S. stocks.
To leverage the growth potential of Bitcoin, MicroStrategy acquired a significant volume of the digital currency, amassing a total of 446.4K BTC by the end of 2024, thereby gaining control over 2.2% of the overall Bitcoin supply.
An intriguing aspect was the fervent buying spree witnessed in the last quarter of 2024. In November alone, the company procured over 107K BTC in two transactions valued at over $10 billion.
Although the pace of Bitcoin acquisition decelerated in December, MicroStrategy unveiled plans to launch a substantial equity issuance program to expedite its Bitcoin-focused strategy. The company disclosed intentions to augment MSTR’s share count to over 10 billion units to align with its strategic objectives.
Looking ahead, the outcome of MicroStrategy’s ambitious Bitcoin venture in 2025 remains uncertain. Meanwhile, following a significant sell-off of Bitcoin during the holiday period, the company’s stock witnessed a notable 46% decline.
During the same time frame, the price of Bitcoin plummeted from $108K to a low of $92K before initiating a minor rebound to around $97K in early January.
However, the decline in MicroStrategy’s stock price seemed to stabilize around the intersection of a price gap and the 61.8% Fibonacci golden ratio level (approximately $300).
Some industry analysts posit that the recent low valuation coupled with subdued market sentiment could present an opportune moment for purchasing MicroStrategy shares at a discount.