MicroStrategy is now up over 500% year-to-date, approaching a $100 billion market cap.

Self-described bitcoin (BTC) development company MicroStrategy (MSTR) has just breached into the top 100 U.S. publicly traded companies, currently sitting in 97th place.

The company jumped 29 places on Tuesday’s performance, which saw a 12% price surge through $400 a share, now trading at $430, just as the market closed. The impressive performance coincided with bitcoin hitting new all-time highs of over $94,000.

MicroStrategy has been one of the main stories of 2024, as it has soared over 500% year-to-date, with bitcoin up over 100% in the same time frame.

The most impressive stat is that in five years, MicroStrategy has outperformed NVIDIA (NVDA) even though MSTR only adopted bitcoin as a treasury asset in August 2020. MicroStrategy is up 2,739%, while NVIDIA is up 2,688%.

As of Nov. 18, MicroStrategy held 331,200 bitcoin, which would make their current stash worth over $30 billion.

The developments keep coming for the largest publicly traded bitcoin company. On Nov. 18, MicroStrategy announced a $1.75 billion convertible senior note at a 0% coupon. The note will mature on December 1, 2029, it can be repurchased or redeemed earlier in accordance with the terms. It is unsecured and will not bear regular interest.

We are waiting on further developments if this convertible note has been oversubscribed, which would increase its issuance by $250 million, for a total of $2 billion.

MicroStrategy is up over 3% in pre-market trading on Wednesday.

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The launch of options on spot bitcoin exchange-traded funds in the U.S. will reduce the incentives for investors to hold MicroStrategy stock over these ETFs, the report said.

MicroStrategy’s (MSTR) current premium relative to its bitcoin (BTC) stack is unlikely to last, Steno Research said in a report Friday.

“This conviction is reinforced by the diminishing effects of MicroStrategy’s recent stock split,” analyst Mads Eberhardt wrote, adding that the launch of options on spot bitcoin exchange-traded funds (ETFs) in the U.S will also lessen the motivation for investors to hold the stock over these ETFs.

The software company founded by Michael Saylor carried out a 10-for-1 stock split in August, a move that according to Steno has contributed to the recent rally.

Steno noted that the company’s premium relative to its bitcoin horde has recently surged to almost 300%.

This suggests that the firm’s valuation is “diverging significantly from a straightforward calculation of its asset and and business fundamentals,” the report said.

As regulators become more favorable to bitcoin and crypto in general, investors may choose to hold bitcoin directly instead of MicroStrategy stock, Steno said. If Donald Trump is re-elected this regulatory trend is expected to continue.

Bitcoin is expected to perform strongly this quarter and into 2025, which means that an “even higher buying demand would be required to sustain MicroStrategy’s current premium,” the note said.

MicroStrategy’s existing premium is unsustainable, especially given the fact that during the 2021 crypto bull market it was below 200% for most of the time, the report added.

The stock recently hit a new all-time high, having surged over 240% year-to-date.

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MicroStrategy is up over 240% year-to-date with the NAV premium approaching 3.

Bitcoin (BTC)-holder MicroStrategy’s (MSTR) soaring stock is driving up trading volumes relative to AI-proxy Nvidia (NVDA), one of the biggest companies by market cap, reflecting heightened investor enthusiasm.

MSTR has surged over 240% this year, with prices doubling to $236 in the past five weeks alone, according to data source TradingView. That’s the highest level for the stock since the dotcom bubble 25 years ago. The rally has MSTR closing in on a market cap of $50 billion, barely 1.5% of NVDA’s $3.44 trillion.

However, MSTR’s trading volume, as a percentage against NVDA, has continued to climb this year, reaching a high of 17.65% this month. According to Investing.com data, this milestone occurred on Oct. 11, as MicroStrategy saw 30 million trading volume, while NVIDIA had 170 million.

That’s a significant improvement since the bull market of 2021. Back then, MSTR peaked over $130 on Feb. 9 with a volume of 23.2 million, equating to just 8% of NVDA that day.

An increase in trading volumes alongside a price rally may confirm the stock’s uptrend. That said, a continued surge in volume relative to NVDA might be telling of a build up of a speculative froth in the market.

MicroStrategy outperforms Nvidia

With a year-to-date gain of over 240%, MSTR has outperformed NVDA’s 192% surge by a big margin. Since MSTR adopted bitcoin as a treasury asset in August 2020, the gap has grown even bigger, with MSTR up 1,800% versus NVDA’s 1,150%, that’s probably the best evidence of MicroStrategy and its CEO Michael Saylor’s success.

MicroStrategy’s net asset value (NAV), which is is calculated by dividing MSTR’s market capitalization by the value of its bitcoin stack, continues to expand once again, with bitcoin still trending in the mid $60,000 range. According to the MSTR tracker, the NAV premium currently sits at almost 3, the highest level since early 2021.

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NPS also holds over $45 million worth of Coinbase shares.

South Korean pension fund, National Pension Service (NPS), bought MicroStrategy (MSTR) shares worth nearly $34 million in the second quarter of this year, according to a filing made public earlier this week.

The fund disclosed that it purchased 24,500 shares at an average price of $1,377.48, before MicroStrategy announced a 10-for-1 stock split in the beginning of this months. This brings the total number of shares to 245,000, valued at $32.32 million, based on MicroStrategy’s last close of $131.93.

The purchase by NPS can be seen as an indirect investment in bitcoin (BTC) as MicroStrategy is the largest corporate holder of the token.

Earlier this month, Wall Street broker Benchmark raised its price target on the Michael Saylor-led firm to $2,150 from $1,875. Benchmark raised the price target despite MicroStrategy missing its revenue target for Q2.

NPS also holds 229,807 shares of Coinbase (COIN), worth over $45 million, based on Coinbase’s last close of $197.12. The fund started buying shares in the crypto exchange in 2023, snapping up 282,673 shares at an average price of $70.5.

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Michael Saylor’s firm is the only corporation that has developed institutional demand for bitcoin linked convertibles, the report said.

MicroStrategy (MSTR) is not just a software firm diversifying its corporate treasury into cryptocurrency, it is pioneering bitcoin (BTC) capital markets, broker Bernstein said in a research report on Tuesday.

“MSTR is the only corporate that has developed institutional demand for bitcoin linked convertibles,” analysts Gautam Chhugani and Mahika Sapra wrote.

The broker notes that to date MicroStrategy has raised $4 billion of convertible debt for the solpurpose of buying more bitcoin. A convertible bond is a type of debt security that can be converted into shares. Michael Saylor’s firm currently holds 214,400 bitcoin worth about $14.5 billion. It started buying the cryptocurrency as a reserve asset in 2020. “No other corporate has an active bitcoin investing strategy that can attract capital at scale,” the authors wrote.

MicroStrategy’s long-term convertible debt strategy means it has enough time to benefit from potential bitcoin upside with limited liquidation risk to the crypto on its balance sheet, the note said.

When bitcoin rises the Virginia-based company has more room to issue new debt, conversely when the crypto falls and leverage rises, the firm can issue new shares to cut leverage, Bernstein noted.

This use of both equity and debt has seen MicroStrategy grow its bitcoin per equity share nearly 67% in the last four years, the report said.

Bernstein notes that MicroStrategy has not sold any bitcoin since it started buying the crypto in 2020, and it expects the company to continue to raise capital to add to its stash.

The broker has an outperform rating on MicroStrategy stock with a $2,890 price target. The shares erased a drop of as much as 2.5% to trade little changed around $1,509.

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The District of Columbia sued Saylor in 2022 for allegedly not paying income taxes while living in the district.

MicroStrategy (MSTR) founder and Executive Chairman Michael Saylor agreed to a $40 million settlement with the District of Columbia in what officials said was the biggest-ever income tax fraud recovery in the district, the attorney general’s office announced on Monday.

The District of Columbia sued Saylor and his company in August 2022, alleging the executive paid no income taxes in the district during the more than 10 years he had lived there. It also said MicroStrategy conspired to help him do so. The attorney general’s office alleged Saylor avoided paying more than $25 million in taxes to the district, saying he had claimed to live elsewhere.

The New York Times first reported the news.

“Florida remains my home today, and I continue to dispute the allegation that I was ever a resident of the District of Columbia,” Saylor told the New York Times. “I have agreed to settle this matter to avoid the continued burdens of the litigation on friends, family, and myself.”

Shares of the Tysons Corner, Virginia-based software developer, rose 3% in pre-market trading.

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Taking advantage of a massive run-up in the stock, the company is looking to add to its 193,000 bitcoin stack.

MicroStrategy (MSTR) Tuesday evening announced plans to raise $600 million by selling convertible debt in a private offering, with intentions of using the funds to buy acquire more bitcoin (BTC).

Helmed by its founder, former CEO and now Executive Chairman Michael Saylor, the company has been a relentless accumulator of bitcoin since mid-2020. At last check, MicroStrategy held 193,000 tokens worth more than $13 billion at the current price of $67,500.

“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes,” the company said in a press release.

In issuing the convertible paper, MicroStrategy is taking advantage of a major run-up in its stock price, the shares having nearly doubled in 2024, including a 24% advance in yesterday’s market action. MSTR is lower by 6% in early trading on Tuesday.

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MicroStrategy is also looking to raise up to $750 million in a sale of class A common stock.

Microstrategy (MSTR), the largest corporate holder of bitcoin (BTC), boosted its holdings in November, buying some 16,130 BTC, worth around $608 million at current prices.

The Michael Saylor-founded software developer bought the bitcoin for around $593.3 million in cash at an average price of about $36,785 apiece, according to a regulatory filing on Thursday. It now holds 174,530 BTC bought at an average of about $30,252 per coin.

The November purchase marks an acceleration in the firm’s bitcoin buying activities. As of end-October MicroStrategy held 158,400 BTC, having acquired 6,607 BTC since the beginning of the third quarter. It’s now increased its holdings by over 10% in a month.

MicroStrategy also entered into an agreement with Cowen and Company, Canaccord Genuity and BTIG to offer up to $750 million worth of class A common stock.

MSTR shares fell 0.82% to $502.96 in early trading on Nasdaq.

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