MicroStrategy Touches New Highs as Trading Volume Rises Relative to Nvidia
Qadir AK25 Oct 20242 min read
In what will be a shocker for many, MicroStrategy’s big bet on Bitcoin is paying off, with its stock surging over 7% on Oct. 25, hitting a 25-year high of $236! This jump continues a six-week rally for the top corporate Bitcoin holder, even outpacing Microsoft, which is now set to vote on potentially adding Bitcoin to its balance sheet. Moreover, the firm is experiencing a remarkable surge in both stock value and trading volume relative to Nvidia (NVDA). With a year-to-date increase of over 240%, MSTR’s stock price has doubled in the past five weeks alone, now trading at $236. This rally brings MicroStrategy’s market cap close to $50 billion, only 1.5% of Nvidia’s massive $3.44 trillion valuation.
Despite this, MicroStrategy’s trading volume reached 17.65% of Nvidia’s in October—an impressive milestone for a company with such a smaller market cap.
With MSTR’s rise one thing is clear Bitcoin is the way to get the maximum profit in the current volatile market.
A Closer Look at the Numbers
MicroStrategy’s trading activity has seen significant growth, hitting a record 17.65% of Nvidia’s trading volume on October 11, with MSTR trading 30 million shares while NVDA trading 170 million. This trading volume surge is similar to its peak in 2021 when MSTR only reached 8% of Nvidia’s volume on its best day. The rise in trading volumes, alongside MicroStrategy’s stock price rally, could indicate increased market enthusiasm and a potential uptrend.
Outperformance Against Nvidia and NAV Premium Increase
Interestingly, its year-to-date, MSTR has outpaced Nvidia’s impressive 192% gain, with MicroStrategy up 1,800% since it adopted Bitcoin as a treasury asset in August 2020, compared to Nvidia’s 1,150% rise. This performance highlights CEO Michael Saylor’s strategic commitment to Bitcoin, which continues to drive investor interest and boost the company’s market position.
Meanwhile, MicroStrategy’s net asset value (NAV), calculated by dividing MSTR’s market cap by the value of its Bitcoin holdings, is nearing a premium of 3—the highest since early 2021. With Bitcoin hovering around $60,000, MicroStrategy’s NAV premium reflects growing investor confidence in the firm’s Bitcoin-centered strategy.
What’s Next for MicroStrategy?
With MSTR just 8% shy of a $50 billion market cap, the stock’s continued rally and rising NAV premium could point to sustained investor interest in the company’s Bitcoin-heavy approach. However, the surge in trading volume relative to Nvidia may also suggest a build-up of speculative interest. For now, MicroStrategy’s approach appears to resonate with investors, positioning the company as a unique player in both the tech and crypto scenario.
MSTR’s Bitcoin strategy and some portfolio shifts in recent months have paid them paid off, are you following the MSTR for portfolio management? Tell us.
