- MicroStrategy and BTC topped 2024 world asset performers.
- Will the firm’s bold BTC strategy pay off again in 2025?
MicroStrategy’s aggressive Bitcoin [BTC] buying spree in 2024 seems to have paid off. According to Galaxy Research, the firm’s stock, MSTR, topped 2024 world asset performers with 358% yearly gains.
Source: Galaxy Research
MSTR shared the first spot with Palantir Technologies [PLTR], a software company that also offers data analytics solutions to cryptocurrency firms.
BTC ranked third, while Nvidia came in second. Alex Thorn, head of firmwide research at Galaxy Digital, noted that the top two performers were related to BTC. He said,
“Even on a risk-adjusted basis (sharpe), MSTR finished 1st and BTC was 3rd. 2 of top 3 assets in 2024 were Bitcoin-related.”
MicroStrategy’s BTC bet
MSTR’s remarkable yearly performance was no surprise. The firm’s founder and former CEO, Michael Saylor, is a BTC maxi who believes that the cryptocurrency will always outperform most U.S. stocks.
To capitalize on BTC’s growth, the firm acquired a substantial amount of the cryptocurrency (446.4K BTC) and now controls 2.2% of the total supply as of late 2024.
Interestingly, the most aggressive buying spree occurred in Q4 2024. In November alone, the firm acquired over 107K BTC, worth over $10B, in two transactions.
Source: CryptoQuant
While the pace of acquisition slowed in December, the firm is set to launch a massive equity issuance program to accelerate its BTC strategy. It recently announced plans to increase MSTR’s share count to over 10 billion to achieve its targets.
It remains to be seen if MSTR’s bold bet on BTC will pay off again in 2025. In the meantime, the stock was down 46% following a massive BTC sell-off during the holiday season.
Source: MSTR, TradingView
Over the same period, BTC dropped from $108K to a low of $92K before attempting a rebound to $97K in early January.
However, the MSTR decline eased at the confluence of a price gap and the golden ratio 61.8% Fibonacci level (near $300).
Some market commentators believe the recent low and weak sentiment could provide the best discount for buying MSTR.
