Key Points
- MicroStrategy’s stock, MSTR, and Bitcoin were the top performers in 2024 with significant yearly gains.
- The firm’s aggressive Bitcoin acquisition strategy is set to continue in 2025.
MicroStrategy’s bold approach to acquiring Bitcoin (BTC) in 2024 has yielded positive results. As per the findings of Galaxy Research, the company’s stock, MSTR, was a leading performer in global assets in 2024, boasting 358% annual gains.
MSTR ranked first alongside Palantir Technologies [PLTR], a software firm providing data analytics solutions to crypto companies. Bitcoin secured the third place, with Nvidia holding the second position. Alex Thorn, Galaxy Digital’s Head of Firmwide Research, highlighted that the top two performers were Bitcoin-related.
MicroStrategy’s Bitcoin Strategy
The impressive yearly performance of MSTR was anticipated. Michael Saylor, the company’s founder and ex-CEO, is a Bitcoin maximalist who asserts that the cryptocurrency will consistently outperform most US stocks.
In order to leverage Bitcoin’s growth, MicroStrategy purchased a significant amount of the cryptocurrency (446.4K BTC) and now holds 2.2% of the total supply as of the end of 2024. The most aggressive buying spree took place in Q4 2024, with the company acquiring over 107K BTC, valued at over $10B, in two transactions.
Despite a slowdown in acquisition in December, MicroStrategy is preparing to initiate a large-scale equity issuance program to boost its Bitcoin strategy. The company has recently announced its intention to increase MSTR’s share count to over 10 billion to reach its objectives.
Future Performance
Whether MSTR’s daring Bitcoin bet will yield dividends in 2025 is yet to be seen. Meanwhile, the stock experienced a 46% drop following a substantial Bitcoin sell-off during the holiday season.
During the same timeframe, Bitcoin’s value fell from $108K to a low of $92K before attempting to recover to $97K in early January. However, the fall in MSTR’s value was mitigated at the confluence of a price gap and the golden ratio 61.8% Fibonacci level (around $300).
Certain market analysts suggest that the recent low and weak sentiment could offer the best discount for purchasing MSTR.
