Quick Take
Since the start of 2024, MicroStrategy (MSTR) has delivered an impressive 174% return, far outpacing the 35% return of BlackRock’s Bitcoin ETF (IBIT). To put this in perspective, the IBIT return is notable, as the GLD ETF, which tracks gold, didn’t achieve a 35% return over almost two years. This means MSTR has outperformed IBIT by a factor of five.
MSTR vs IBIT: (Source: TradingView)
Quant Research Analyst Ryan highlighted that MSTR has outperformed IBIT by a factor of 5. Additionally, he notes that current trendlines indicate a continued divergence, suggesting that MSTR is likely to outpace IBIT further.
MSTR vs IBIT Price Return: (Source: @ryquant)
Leading up to the IBIT ETF launch, there was a significant Bitcoin run from $25k in October 2023 to $50k in February 2024, with substantial inflows into BITO, another Bitcoin-related ETF, while Bitcoin miners showed strong performance. Initially, IBIT outperformed MSTR, maintaining this edge until the end of February. However, since then, MSTR has surged ahead.
BITO vs WGMI: (Source: TradingView)
The momentum for MicroStrategy continued with the launch of the 1.75x leveraged MSTR ETF on Aug. 21. According to Eric Balchunas, a senior ETF analyst at Bloomberg, this ETF has already amassed $127 million in assets, with daily trading volumes exceeding $100 million. Balchunas highlighted its volatility and high trading activity.
“equivalent of a mechanical bull,”
MSTX US Equity: (Source: Eric Balchunas)
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