Key Points
- MicroStrategy’s stock (MSTR) has outperformed Bitcoin (BTC), miner stocks, and Coinbase’s COIN, rallying 34% last week.
- Despite its success, MSTR’s future performance could be affected by potential pullbacks in BTC’s price.
MicroStrategy’s stock [MSTR] emerged as the highest-performing share with exposure to Bitcoin [BTC] last week.
MSTR shares surged 34% in the last week, reclaiming the $1500 level. This surge was fueled by Bitcoin’s recovery and MicroStrategy’s addition to the MSCI Index.
Performance Comparison
The performance of MSTR was superior to that of Coinbase [COIN] and several Bitcoin miner stocks.
When adjusted for the weekly chart, MSTR shares reported 3.6X more gains than COIN. MSTR saw a 22% increase in the past five trading days, compared to a 6% increase for COIN.
Bitcoin miner stocks also experienced significant gains, although slightly less than MSTR. For instance, the Valkyrie Bitcoin Miners ETF [WGMI], which tracks top BTC miner stocks like Marathon Digital’s stock [MARA], posted 12.8% gains in the past five-day trading period.
MicroStrategy’s Bitcoin Strategy
Under the leadership of its founder and CEO, Michael Saylor, MicroStrategy has maintained its Bitcoin strategy.
In Q2, the company added 122 BTC to its holdings, bringing its total BTC stash to 214,400 coins, valued at over $15 billion based on current market prices.
However, MSTR’s strong performance could be impacted by potential pullbacks in Bitcoin’s price. At the time of writing, BTC was slightly below $70K after hitting the range-highs at $71K, while MSTR was trading at $1650.
If BTC extends its retracement, MSTR’s further rally could be hindered.
