MicroStrategy (NASDAQ:MSTR) shares hit a new record high as Bitcoin price tops $71,000.
So far this year, MicroStrategy has outperformed Bitcoin. With BlackRock’s increased investment, MicroStrategy’s stock has surged to a 24-year high.
MicroStrategy shares up 470% in 2024
MicroStrategy shares hit a high of $258 per share at the close of trading yesterday. The stock gained 125% in September alone and is up 470% year-to-date. While Bitcoin has yet to break its previous highs, MicroStrategy has surpassed its previous peak in early October and continues to rise.
Bitcoin has risen more than 8% over the past two sessions, approaching its all-time high of around $74,000, which was reached in March.
This comes as US exchange-traded funds investing in Bitcoin have seen massive net inflows over the past few days.
In the past few hours, Bitcoin has hit $73,525, approaching a new all-time high, while other cryptocurrencies, such as Ethereum, the second-largest cryptocurrency, and meme-favorite Dogecoin, have also seen a rise.
What moves MicroStrategy stock?
MicroStrategy stock has seen a surge on news that investment giant BlackRock has increased its stake in the company to 5.2%. In addition to its bitcoin purchases via ETFs, BlackRock is looking to maximize returns by investing in a company closely tied to bitcoin.
MicroStrategy founder Michael Saylor recently noted that MicroStrategy has outperformed not only Bitcoin, but many other assets as well.
In 2024, the company continued to issue bonds to purchase bitcoin. Last month, MicroStrategy issued $700 million in bonds, following an $800 million bond issue in June. MicroStrategy currently has the largest bitcoin reserve among public companies, with 252,220 bitcoins, or 1.2% of the total supply. The average purchase price is around $39,266 per bitcoin, representing a gain of more than 80%.
Some industry experts expect the correlation between MicroStrategy's stock price and the price of Bitcoin to continue to fuel future gains for MicroStrategy stock.
