MicroStrategy's leveraged Bitcoin strategy has caused its stock price to increase more than four times the rate of BTC within the year

MicroStrategy (MSTR) has seen its stock price rise nearly 250% so far this year, continuing the momentum of a 353% increase in 2023. Although BTC has achieved strong growth so far in 2024, its gains are far less than MSTR's. At the time of writing this article, BTC's return rate from the beginning of the year is 60%, while MSTR's return rate is almost four times higher. This highlights to what extent MicroStrategy's stock acts as a leveraged bet on Bitcoin price trends. MicroStrategy’s stocks serve as a leveraged version of Bitcoin. The company using debt to fund its bitcoin purchases means that its stock price often fluctuates more than Bitcoin itself.

When Bitcoin rises, MicroStrategy benefits from amplified returns, which can be seen from the outstanding performance of this stock throughout the year. MicroStrategy is the largest corporate holder of Bitcoin with 252,220 BTC worth over $17 billion and total cost around $9.9 billion.