MicroStrategy has reaped significant rewards from its ambitious acquisition of Bitcoin (BTC) in 2024. Based on data from Galaxy Research, the company’s stock, MSTR, emerged as the top performer among world assets in 2024, boasting a remarkable 358% annual increase.
Sharing the leading position with MicroStrategy was Palantir Technologies (PLTR), a software company known for providing data analytics solutions to various cryptocurrency firms. Interestingly, BTC secured the third spot, with Nvidia claiming the second position. According to Alex Thorn, the head of firmwide research at Galaxy Digital, it is noteworthy that the top two performers are closely linked to Bitcoin. Thorn remarked,
“MSTR claimed the top spot, and BTC came in third, even in terms of risk-adjusted performance (Sharpe ratio). The top three assets in 2024 had connections to Bitcoin.”
MicroStrategy’s Strategic Bitcoin Investment
The exceptional performance of MSTR in 2024 did not come as a surprise. The company’s founder and former CEO, Michael Saylor, is a strong proponent of Bitcoin and firmly believes in its long-term growth prospects, suggesting that it will surpass most U.S. stocks in terms of returns.
To take advantage of Bitcoin’s potential growth, MicroStrategy accumulated a significant amount of the cryptocurrency, amassing a total of 446.4K BTC, equivalent to 2.2% of the overall Bitcoin supply by late 2024.
Notably, the most aggressive buying spree took place during the fourth quarter of 2024. In November alone, MicroStrategy acquired more than 107K BTC, valued at over $10 billion, through two substantial transactions.
While the pace of acquisition slowed down in December, the company unveiled plans for a substantial equity issuance program to accelerate its Bitcoin-focused strategy. MicroStrategy recently announced intentions to increase the company’s share count to over 10 billion shares in order to achieve its strategic objectives.
It remains to be seen whether MicroStrategy’s bold move in Bitcoin will continue to pay dividends in 2025. Nevertheless, the company’s stock witnessed a 46% decline following a significant sell-off of Bitcoin during the holiday season.
During the same period, Bitcoin’s price plummeted from $108,000 to a low of $92,000 before initiating a recovery to $97,000 in early January.
Despite the decline, MicroStrategy’s stock found some support around the intersection of a price gap and the 61.8% Fibonacci retracement level (around $300). Some industry analysts suggest that the recent low and subdued market sentiment could represent an attractive opportunity to purchase MicroStrategy shares at a discounted price.