MicroStrategy (MSTR) is enjoying a remarkable rally, with its stock price doubling to $236 in the past five weeks and up over 240% year-to-date.
MicroStrategy Reaches New Highs as Transaction Volumes Soar Against Nvidia
The recent surge reflects growing investor enthusiasm for the company’s Bitcoin (BTC) strategy, as trading volumes reach new highs compared to tech giant Nvidia (NVDA). Volume Surge Relative to Nvidia Data from TradingView shows that MSTR shares have reached their highest price since the dot-com bubble 25 years ago.
While MicroStrategy’s market cap of nearly $50 billion is only 1.5% of Nvidia’s $3.44 trillion market cap, its trading volume tells a different story.
On Oct. 11, MicroStrategy had a 17.65% volume lead over Nvidia. The company traded 30 million shares compared to Nvidia’s 170 million shares, according to Investing.com data.
This marks a significant jump from February 2021, when MSTR’s peak volume of 23.2 million shares was equal to just 8% of Nvidia’s volume that day.
While the increased volume relative to Nvidia suggests increased market participation, some analysts suggest it could indicate speculative froth building in the stock. Outperforming Nvidia With a 240% gain this year, MSTR has significantly outperformed Nvidia’s 192% year-to-date gain.
The difference becomes even more apparent when looking at long-term returns since August 2020, when MicroStrategy adopted Bitcoin as a treasury asset. During that time, MSTR has gained 1,800%, outpacing Nvidia’s 1,150% growth.
The company’s success highlights the effectiveness of its Bitcoin strategy led by Chief Executive Officer Michael Saylor, which has positioned MicroStrategy as one of the strongest performers among BTC-backed firms.
*This is not investment advice.
