- MicroStrategy stock has more than doubled this year as BTC gained
- Bitcoin rally spurs momentum in the crypto-friendly software firm
- The price of Bitcoin remains moving sideways as traders look to Ether ETF launch
MicroStrategy Stock Rallies as Bitcoin Gains
MicroStrategy stock has more than doubled in valuation this year as the price of Bitcoin has soared to record highs. The software firm, notorious for its big bets on Bitcoin, is the biggest corporate investor in Bitcoin and currently owns more than 226,000 units of the original crypto asset.
MicroStrategy has been fiercely bullish on the upside trajectory of Bitcoin. Its founder, Michael Saylor, has on numerous occasions defended the company’s aggressive approach to hoarding Bitcoin, calling the token a hedge against inflation, digital gold, and a store of wealth.
Bitcoin Is Up 50% This Year, MicroStrategy Is Up 160%
And indeed, that is what we have been seeing so far this year. The price of Bitcoin has soared 50% this year, sitting on a market valuation of more than $1.2 trillion.
MicroStrategy, on the other hand, is up more than 160% on the year so far, boasting a market cap of more than $31 billion. The value of its massive stack of Bitcoin is estimated to be worth about half of that market cap.
Interestingly, the Bitcoins held by the corporate Bitcoin fan are directly contributing to the company’s valuation since they are held in the treasury, accounting for the rise or fall of MicroStrategy’s valuation.
Who’s Second and Third?
For the curious minds among us, the second-largest holder of Bitcoin is Marathon Digital Holdings, a mining company. And third on that list is EV maker Tesla with its eccentric billionaire chief executive Elon Musk. Tesla holds 9,720 Bitcoins worth an estimated $650 million in today’s market prices.
What’s the Price of Bitcoin Today?
The original cryptocurrency is trading at levels around $67,000 per token as markets brace for looming volatility later today. But before that — the price of the orange coin has been fairly muted so far this month as traders have added gains of just about 6% to its market cap.
A year ago, however, bitcoin was trading at levels around $30,000. In the span of just 12 months, more than $700 billion have been added to Bitcoin’s value after a powerful 120% rally for that time span.
Spot Ethereum ETFs to Roll Out Today
Looking ahead, the first spot Ethereum exchange-traded funds are about to make a splash today. The Securities and Exchange Commission has greenlighted the first eight Ethereum investment vehicles, holding actual tokens, and not futures-based contracts.
Volatility is expected today as analysts predict as much as $5 billion to be invested in the novel asset class that launches today.
