Beyond Bitcoin: How MicroStrategy stock beat the crypto market

  • MicroStrategy stock has outperformed BTC, miner stocks and Coinbase’s COIN.
  • Despite having more upside potential on price charts, MSTR could be affected by BTC’s pullback

MicroStrategy’s stock [MSTR] was apparently the best-performing share with Bitcoin’s [BTC] exposure last week.

MSTR shares rallied 34% last week and reclaimed the $1500 level, boosted by the BTC recovery and MicroStrategy’s inclusion in the MSCI Index. The rally extended into the current week and hit a high of $1740, tucking an extra +4% as of 22nd May.

Overall, the MSTR’s remarkable double-digit performance eclipsed even Coinbase [COIN] and several other Bitcoin miner stocks. 

MicroStrategy stock vs other BTC-linked stocks

MicroStrategy’s shares recorded 3.6X more gains than Coinbase’s, the largest US cryptocurrency exchange, stock [COIN] when performance was adjusted on the weekly chart.  

MSTR was up 22% in the past five trading days, compared to COIN’s 6% over the same period. 

Interestingly, collective Bitcoin miner stocks also saw remarkable double-digit gains but were slightly lower than MSTR over the same period. 

Notably, Valkyrie Bitcoin Miners ETF [WGMI], which tracks top BTC miner stocks, including Marathon Digital’s stock [MARA], recorded 12.8% gains in the past five-day trading period. 

That said, MSTR eclipsed COIN, and overall BTC miner stocks over the last 5-day trading sessions. However, it’s worth noting that COIN’s performance has remained relatively muted, partly because of the ongoing lawsuit with the US SEC. 

MicroStrategy, under the guidance of its founder and CEO, Michael Saylor, has maintained its Bitcoin strategy. 

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So far, in Q2, the firm added 122 BTC, bringing its total BTC war chest to 214,400 coins, worth over $15 billion based on current market prices. 

Compared to the firm’s current total of 17.7 million shares as of 22nd May, its BTC per share was approximately 0.01209 BTC. 

But large number of investors have thronged to MSTR, sometimes way higher than BTC, the underlying asset they are seeking exposure to. 

But MSTR’s allure could be irresistible, especially compared to BTC’s performance. MSTR has outperformed BTC on a weekly, monthly and YTD (Year-to-Date) basis.

In May, MSTR was up 55% compared to BTC’s 15%. On the YTD front, MSTR’s gains were over 140%, while BTC’s value was +58%. 

It meant MSTR holders had better returns than their BTC counterparts. So, what’s next for MSTR’s price? 

What’s next for MSTR’s price?

MicroStrategy stock MSTRMicroStrategy stock MSTR

Source: MicroStrategy stock (MSTR), TradingView

On the daily chart, the key next bullish targets were the ATH of $1999 and $2300 based on the Fib retracement tool (yellow). The bullish reading on the RSI (Relative Strength Index) indicated that the above bullish targets were feasible. 

However, despite MSTR outperforming BTC on the price charts, a pullback by the king coin could erase part of the share’s gains. 

At the time of writing, BTC eased slightly below $70K after hitting the range-highs at $71K, while MSTR traded at $1650. MSTR’s further rally could be derailed if BTC extends its retracement. 

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