How Does MicroStrategy Compare to the S&P 500 Companies?

As Wall Street investors increasingly turn to Bitcoin (BTC), MicroStrategy, led by Michael Saylor, has established itself as a prominent player in the crypto market.

The company, known for its enterprise analytics and mobility software, has previously sold shares to institutional investors in order to fund further Bitcoin purchases. Recently, MicroStrategy completed a $1 billion convertible note offering set to mature in 2028, specifically aimed at acquiring more BTC.

This move enabled the company to buy 7,420 BTC for around $458 million, averaging about $61,000 per coin, raising its total holdings to approximately 252,220 BTC.

Bitcoin’s price has surged significantly due to its capped supply and growing acceptance among institutional investors. Since the start of the year, the cryptocurrency has gained over 50%, outpacing gold, which has seen growth of just under 30% in the same period.

Since adopting its Bitcoin acquisition strategy, MicroStrategy’s stock performance has closely followed Bitcoin’s price trends, allowing it to outperform many of its Wall Street competitors, including all members of the S&P 500.

$MSTR is beating 100% of the S&P 500 with #Bitcoin . pic.twitter.com/XqMQHFoXmy

— Michael Saylor⚡️ (@saylor) September 21, 2024

As of the latest report, MicroStrategy has a market capitalization of around $30.7 billion and 183 million shares outstanding. Analysts expect MSTR to continue its bullish momentum, potentially reaching a new all-time high following two decades of consolidation.