MicroStrategy Stock Hits All-Time High as Bitcoin Breaks $88,000

MicroStrategy’s stock price jumped nearly 26% on Monday, hitting a new all-time high mark above $351 after the world’s largest corporate treasury reserve holder of Bitcoin unveiled its latest acquisition.

MSTR finished the day at a price of $340, but has climbed as high as $354 in after-hours trading, per Google Finance.

Padding its corporate coffers by over 27,200 BTC, MicroStrategy said Monday that it had acquired over $2 billion worth of the asset between October 31 and November 10. As of this writing, the company’s trove of 279,420 Bitcoin is worth about $24.3 billion.

Shares in the Tyson, Virginia-based firm have so far rallied 396% year-to-date, outpacing Bitcoin’s 97% climb to a current price of approximately $87,000 over the same period. Bitcoin hit a new peak price of $88,364 late Monday afternoon, per data from CoinGecko, but has dipped since.

Alongside Donald Trump’s White House win last week, MicroStrategy’s stock price has been riding a wave of investor enthusiasm rooted in promises of a more crypto-friendly administration.

Established in 1989, the software firm that now describes itself as a Bitcoin development company first began purchasing BTC in August 2020. Years later, MicroStrategy’s Bitcoin-buying spree has helped the firm surpass an all-time high stock price of $313 that was originally set in March 2000, according to Macrotrends.

Last month, MicroStrategy announced a three-year plan to purchase $42 billion worth of Bitcoin through capital raises. By issuing equity and debt, the company has effectively turned itself into a leveraged bet on Bitcoin while accumulating the asset for investors.

“Our focus remains to increase value generated to our shareholders by leveraging the digital transformation of capital,” MicroStrategy President and CEO Phong Le said in a statement last month. “As a Bitcoin treasury company, we plan to use the additional capital to buy more Bitcoin as a treasury reserve asset.”

This year, MicroStrategy has raised capital by issuing convertible notes, which can later be turned into shares by a buyer. It has also issued equity through an at-the-money offering program, diluting shareholders to later buy Bitcoin with the proceeds.

Even though spot Bitcoin ETFs have pulled in more than $26 billion worth of inflows this year, MicroStrategy’s status has persisted as a popular proxy bet for the asset. Meanwhile, the company’s valuation has risen far past that of its Bitcoin holdings.

With a market capitalization of $68.9 billion, MicroStrategy’s so-called premium to net asset value (NAV) reached a record high of 2.8x Monday, according to MSTR Tracker. 

In a report last month, the asset manager Bernstein said the company was “building a case” for that premium with time, proving it can increase its Bitcoin holdings per share at a sustainable rate amid a lack of comparable investment vehicles.

Edited by Andrew Hayward