MicroStrategy Inc., the business intelligence company that has turned into the world’s largest corporate holder of Bitcoin, said Tuesday it had been named the best performing cryptocurrency stock of 2024.
Its market capitalization is now $83 billion, and the company’s stock surged 402 percent this year. This reinforces the company’s strategy of buying in large volumes of Bitcoin, which has contributed to its skyrocketing stock value.
MicroStrategy Holds $45 Billion in Bitcoin Assets
MicroStrategy holds nearly 444,262 BTC as of Dec. 23, worth $45 billion at current prices. The company has ridden Bitcoin’s stock price surge (120% year to date) to date. Still, Bitcoin’s rally in 2024 has been fueled by the approval of a spot Bitcoin ETF, Bitcoin’s halving event in April, and the growing geopolitical support for the asset class.
Compared to the broad-based S&P 500 index, which is up 26% this year, these positive signs suggest good macro economics. But Bitcoin’s spectacular price increase has been a tailwind for cryptocurrency-linked stocks that have jumped an average of 129%, according to Bitcoin tracking service Coingecko.
The cryptocurrency sector also includes Core Scientific, whose stock price went up 307 percent after striking a massive 12-year deal with AI hyperscaler CoreWeave. Although Terawulf grew 142%, much of that can be attributed to a 100% year-over-year growth in Terawulf’s self-mining hashrate capacity, increasing to 10.0 EH/s by September 30.
At the same time, Bitdeer Technologies leaped 122 percent on an expansion to integrate mining rigs into its operations, becoming one of the most vertically integrated publicly listed BTC miners.
MicroStrategy has no plans to stop its aggressive growth strategy. Key proposals will be put to a shareholder meeting in early 2025, one of which is to accept a new law that would extend the term limit of CEOs and executive board members. One of these proposals would raise the number of authorized Class A common shares and increase the number of authorized preferred shares.
Taken in context, these are a part of MicroStrategy’s much more expansive vision to execute on its ambitious 21/21 plan. Under the plan, a total of $42 billion in funding will be raised, plus $21 billion in equity, plus another $21 billion in fixed income instruments.
These proposals are crucial, says Chairman Michael Saylor, who has stressed that for MicroStrategy to continue expanding as a Bitcoin treasury company, it is essential. Taken together, the firm’s growth trajectory and developments in the cryptocurrency space show that acquisitions and stock price increases could continue even more forcefully in the coming years.
