Key Points
- MicroStrategy, the largest corporate holder of bitcoin, has been added to the MSCI World Index.
- The company’s stock price has surged following its significant bitcoin acquisitions.
MicroStrategy, renowned as the largest corporate holder of bitcoin, has recently become a part of a major global equity index. This comes in the wake of the company’s stock price experiencing a significant boost.
MicroStrategy Joins MSCI World Index
MSCI, a global entity providing investment decision support tools including equity indexes, announced the addition of MicroStrategy to its MSCI World Index. This change will be effective from May 31.
Following its latest acquisition of bitcoin on April 29, MicroStrategy now possesses 214,400 BTC, currently valued at roughly $13.5 billion. The company’s total acquisitions were made at a cost of $7.5 billion, averaging $35,180 per bitcoin. This implies that the firm has a paper profit of approximately $6 billion from its bitcoin purchases.
Stock Price Surge
MicroStrategy’s stock price has seen a dramatic rise since hitting a low point alongside the cryptocurrency market in December 2022. The company’s shares have increased more than eightfold since then and have risen over 87% year-to-date, outperforming bitcoin’s 45% gains in 2024.
Investment firm Kerrisdale Capital, a shareholder in MicroStrategy, stated in March that the stock was trading at an “unjustifiable premium” to bitcoin.
Given its significant bitcoin holdings, which amount to more than 1% of bitcoin’s total supply of 21 million, MicroStrategy has been increasingly used as a proxy for bitcoin exposure in the traditional market. This was especially notable before the launch of spot bitcoin exchange-traded funds in the U.S. in January.
The inclusion of MicroStrategy in the MSCI World Index is a sign of how bitcoin exposure can infiltrate traditional portfolios. This is due to billions of dollars being tracked or benchmarked against the index. Nonetheless, the introduction of new spot bitcoin ETFs is now quickening this trend.
Earlier this month, MicroStrategy revealed plans to initiate a bitcoin-based decentralized identity solution.
