As Bitcoin price surpassed $71,000, MicroStrategy (MSTR) stock also hit a new high. MSTR has outperformed BTC so far this year.
On October 29 (local time), MicroStrategy surged to a 24-year high as BlackRock increased its stake in the company.
MicroStrategy Stock Soars 470% in 2024
Today, MSTR peaked at $260 per share. The stock has risen 125% in September alone and is up 470% since the start of the year. While Bitcoin has not yet surpassed its previous all-time high, MSTR has continued to rise, exceeding its previous high in early October.
Read more: Top 5 Crypto Companies Likely to IPO in 2024
The momentum for MicroStrategy was sparked by the news that investment giant BlackRock increased its stake in the company to 5.2%. Along with Bitcoin purchases through ETFs, BlackRock's investment aims to maximize returns.
MicroStrategy founder Michael Saylor has also recently emphasized that MSTR 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, and in June, it offered $800 million in bonds. Currently, MicroStrategy holds a total of 252,220 BTC, which is 1.2% of the total supply. The average purchase price is around $39,266 per BTC, representing over 80% in gains.
Some industry experts predict that the correlation between MSTR stock and BTC will further drive up MicroStrategy's share price.
"MicroStrategy is like a 2x leveraged Bitcoin ETF. The implied value of MSTR at various BTC prices is: $70k => $235, $80k => $300, $90k => $365, $100k => $440," analyst Timothy Peterson forecasted.
Read more: Who Owns the Most Bitcoin in 2024?
However, investor PlanG has a more cautious view when analyzing MSTR's price on a log-linear chart.
"A lot of degens are doing all kinds of degenerate stuff related to crypto and doing things like MSTR. I like MSTR, but this is not sustainable. The straight line on a log-linear chart means exponential. Some people are going to get hurt," PlanG commented.
Meanwhile, Bitcoin surpassed $71,000 today, reaching its highest level since July. With the US election less than a week away, investor sentiment towards Bitcoin has turned positive.
