Key Points
- MicroStrategy’s MSTR saw a 342% yearly gain in 2024, outperforming Bitcoin’s 122% gain.
- The company plans to expand its equity issuance program to accelerate its Bitcoin buying spree.
MicroStrategy, a pioneer in the Bitcoin corporate treasury, has seen significant yearly gains in 2024, with its MSTR logging a 342% increase. This was in sharp contrast to the 122% gain seen by Bitcoin during the same period.
This meant that MSTR investors outperformed their Bitcoin counterparts by nearly three times in 2024. Both assets managed to outshine gold and US stocks, which only saw yearly gains of 26% and 24%, respectively.
MicroStrategy’s Future Plans
In 2025, MicroStrategy plans to increase its equity issuance program to 10 billion MSTR shares. This move is expected to further accelerate its Bitcoin buying spree. Many analysts believe this could potentially boost Bitcoin’s value.
Blockware has projected that if Bitcoin corporate treasury adoption continues to grow, and a US Bitcoin strategic reserve is created, Bitcoin could reach values of $225K or even $400K in 2025. However, in a ‘bear case’ scenario, Bitcoin may only reach $150K.
Short-term Outlook
QCP Capital, however, suggests a more muted outlook for Bitcoin in the short term, citing seasonal trends. This could potentially cap MSTR’s short-term gains until the market recovers.
Currently, MSTR is down 45% from its recent peak and is attempting to maintain a value of $300. This comes after Bitcoin’s significant drop from $108K to $92K. If the market weakens further, it could provide discounted buying opportunities for MSTR, especially if a recovery occurs in January.
