MicroStrategy Stock Has Gained Five Times More Than Bitcoin YTD
Date: 2024-11-22 Author: Henry Casey Categories: BUSINESS
MicroStrategy's total market value has now surpassed $96 billion, driven by an increase in its net asset value (NAV) based on its holdings of 331,200 bitcoins. The company's NAV to market value ratio has reached 3.3x, significantly higher than the 1.15x at the start of the year.
These data highlights that the company's market capitalization has significantly outpaced Bitcoin's growth rate over the same period.
On November 20, as Bitcoin reached new record highs, MicroStrategy’s unrealized gains from cryptocurrency investments reached $16 billion. The market value of the Bitcoins on the company’s balance sheet was twice as high as their book value.
A day earlier, MicroStrategy announced plans to issue five-year senior convertible bonds worth $1.75 billion to subsequently purchase Bitcoin. The issue was later increased to $2.6 billion.
In October, the company presented its strategic project “Plan 21/21”, which involves raising $42 billion over three years to further increase Bitcoin reserves.
MicroStrategy CEO Michael Saylor is actively promoting the use of Bitcoin in corporate strategy. On December 10, he plans to speak at a meeting of the Microsoft board of directors with a proposal to consider the first cryptocurrency as a reserve asset for the treasury.
Saylor has previously expressed an ambitious plan to turn MicroStrategy into a $1 trillion Bitcoin bank, highlighting the company's long-term focus on developing in the crypto space.
