Key Takeaways
- MicroStrategy stock has surged 1,540% since 2020.
- The S&P 500 gained 111% over the same period.
- MicroStrategy is unlikely to be added to the S&P 500 due to profit concerns.
MicroStrategy has outperformed every company in the S&P 500 since August 2020, with its stock surging 1,540%, according to Arkham Intelligence.
This remarkable growth is linked to the company’s early adoption of Bitcoin, making it one of the first publicly traded companies to hold the asset on its balance sheet.
Comparison to S&P 500
In comparison, the S&P 500 index grew by just 111% during the same four-year span.
The surge in MicroStrategy shares follows increased retail investor interest, particularly in leveraged MicroStrategy ETFs, which surpassed $400 million in net assets by September 2024.
Analysts see potential for further gains, with popular commentator Tyler Durden pointing out that the company could experience even more momentum based on historical patterns.
Despite the stock’s incredible rise, Seoyoung Kim, a finance professor at Santa Clara University, noted that MicroStrategy is unlikely to join the S&P 500 anytime soon due to its inconsistent profitability.
