finbold.com
Few years in recent memory have been as good for Bitcoin (BTC) as 2024. The world’s premier cryptocurrency not only saw the approval of the first-ever U.S. spot BTC exchange-traded funds (ETFs) but has also been surging in the crypto market.
In fact, Bitcoin price rose 40.11% year-to-date (YTD) from approximately $44,000 to its press time price of $61,937.
Still, one Bitcoin-related stock has managed to outperform the world’s foremost cryptocurrency with its yearly growth – Michael Saylor’s MicroStrategy (NASDAQ: MSTR) – despite widespread fears that the approval of BTC ETFs would dampen its correlation with the coin.
Now, with a Bitcoin surge to $100,000 appearing very likely on the eve of the highly-anticipated halving event – an event that historically led to BTC value rising tenfold, and sometimes even a hundredfold – Finbold decided to try and figure out how high MSTR could go under such circumstances.
MSTR stock price chart
To estimate how high MicroStrategy could go should Bitcoin continue surging, we first need to know how much it has already risen compared to the cryptocurrency.
Perhaps surprisingly – especially given that MSTR shares plunged 20% in the first 48 hours after the ETF approvals – Michael Saylor’s company actually outperformed Bitcoin in 2024.
In the same time frame that saw BTC rise 40.11%, MicroStrategy surged 49.29% – from approximately $685 at the start of the year to $1,022.84 at the stock market’s close on February 29.
Based on this, we know that in 2024, MSTR shares rose approximately 1.23% for every 1% increase in Bitcoin value.
How much could MSTR stock surge if BTC reaches $100,000?
To reach $100,000, Bitcoin would need to increase in price by another 61.58% and climb as much as $38.063.
While such a surge might appear implausibly large at first glance, it is worth remembering that, in the last 5 days alone, BTC rose as much as $10,000. This means that the coin would need less than 4 more such bull runs – or 19 additional days at the current average climbing rate – to reach the target price.
Given MicroStrategy’s slight outpacing of Bitcoin – and assuming the ratio remains level in the foreseeable future – MSTR stock is likely to rise 75.67% by the time BTC price reaches $100,000 – and find itself closer than ever to its former all-time highs above $3,000 at approximately $1,796.82.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.