MicroStrategy’s net asset value (NAV) premium has reached its highest point since February 2021, standing at 2.5 times the value of its Bitcoin holdings. This figure reflects how much MicroStrategy’s market value exceeds the worth of its Bitcoin.
Currently, MicroStrategy is valued at approximately $37.14 billion, while its Bitcoin holdings—252,220 BTC—are worth $15.1 billion. This premium is also visible in the price of MicroStrategy’s stock (MSTR), with its ratio to Bitcoin now at 0.0030, the highest since the company began acquiring Bitcoin in 2020. In comparison, MSTR has surged 11% to a 25-year high, while Bitcoin has only seen a 3% increase.
A Shift Towards Bitcoin
Since CEO Michael Saylor shifted MicroStrategy’s focus to Bitcoin in 2020, the company has become the largest public holder of the cryptocurrency. It has consistently grown its Bitcoin stash by raising funds through stock sales and convertible debt. Consequently, MicroStrategy’s Bitcoin holdings per share have increased to 0.0012, even though some dilution has occurred due to the issuance of more shares.
Outperformance in 2024
Throughout 2024, MicroStrategy has significantly outperformed Bitcoin. The company’s stock has gained over 240% since the launch of Bitcoin spot exchange-traded funds (ETFs) in January, while Bitcoin has declined by 16% since its March peak.
“Bitcoin Yield” Measure
MicroStrategy introduced a new performance metric called “Bitcoin Yield,” which measures the growth of its Bitcoin holdings relative to its outstanding shares. In the second quarter of 2024, this yield rose to 5.1%, up from 4.4% in the first quarter, indicating that the company is increasing its Bitcoin reserves at a faster rate than it is issuing new shares.
Major Bitcoin Acquisition
Between August and September 2024, MicroStrategy made its largest Bitcoin purchase since 2021, adding 18,300 BTC to its holdings. This aggressive acquisition strategy highlights the company’s unwavering commitment to expanding its Bitcoin portfolio amidst market fluctuations.
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