MicroStrategy shares surge 134% and outpaces Bitcoin in 2024

MicroStrategy’s stock has experienced a remarkable 132% increase this year, outpacing Bitcoin (BTC) and other companies with BTC exposure, as reported by research firm Kaiko. The surge is partially due to a short squeeze and is particularly significant in light of the new spot Bitcoin exchange-traded funds (ETFs) in the US, which provide an easy way to invest in BTC.

Despite holding BTC, Tesla and the Block (SQ) have not seen similar gains, with their stocks down by 10% and 29% year-to-date, respectively. These companies have shown a lower correlation with Bitcoin, moving more closely with the broader tech market.

Image: Kaiko

Other firms, including Japan’s Metaplanet and Semler Scientific, have recently added Bitcoin to their balance sheets, following the lead of MicroStrategy, Tesla, and The Block. Metaplanet’s shares jumped by 85% post-announcement, and Semler Scientific saw a 10% increase, surpassing the performance of MSTR, SQ, and TSLA after their initial BTC investment disclosures.

Image: Kaiko

The attractiveness of Bitcoin as a corporate asset has grown with the US Financial Accounting Standards Board’s approval of new crypto accounting rules in December 2023, Kaiko highlights.

These rules, to be implemented in December 2024, will allow companies to list Bitcoin and certain other crypto assets at their fair market value, a change from the previous classification as an indefinite-lived intangible asset.