MicroStrategy's Bitcoin Premium Hits 2.5x, Outperforming BTC by 8x This Year

Ever since the CEO, Micheal Saylor changed the focus of the company to Bitcoin in 2020, it has become the largest public company holder of the cryptocurrency.

MicroStrategy’s net asset value (NAV) premium has reached its highest point since February 2021, now at 2.5 times the value of its Bitcoin holdings.

The NAV premium measures how much MicroStrategy’s market value exceeds the worth of its Bitcoin. At present, the company is valued at about $37.14 billion, whereas its 252,220 Bitcoin holdings are valued at $15.1 billion in the market.

This premium is also reflected in its MSTR price, with its ratio to Bitcoin price currently at 0.0030, the highest since it began purchasing Bitcoin in 2020.

Since its pivot to Bitcoin in 2020, spearheaded by its CEO Micheal Saylor, MicroStrategy has become the largest publicly traded holder of the cryptocurrency.

The company has been actively increasing its Bitcoin holdings by raising funds through stock sales and convertible debt. As a result, the company’s Bitcoin per share has grown to 0.0012, despite some dilution from issuing more shares.

Throughout 2024, MSTR has also outperformed Bitcoin, surging over 240% since the launch of Bitcoin spot exchange-traded funds (ETFs) in January.

This performance is about eight times better than Bitcoin, which has dropped 16% from its peak in March. As of October 8, MicroStrategy’s stock was valued at $200, while Bitcoin prices remained relatively flat.

The company also introduced a performance metric called “Bitcoin Yield,” which tracks the change in Bitcoin holdings relative to its outstanding shares.

In the second quarter of 2024, this yield increased to 5.1%, up from 4.4% in the previous quarter, indicating that it is increasing its Bitcoin holdings faster than it is issuing new shares.

The company recently disclosed adding 18,300 bitcoins to its holdings between August and September, marking its largest purchase since 2021.

Also Read: Unofficial MicroStrategy Token MSTR2900 Surges 500% on Launch

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