MicroStrategy’s MSTR outperforms giants like Meta, Netflix, and NVIDIA on Nasdaq 100

Microstrategy’s stock, MSTR, has bagged second place on the Nasdaq 100 Component Year-to-Date Returns list, outpacing big names like Meta, Netflix, and Nvidia.

As a primary benchmark for tech companies, the Nasdaq 100 highlights top performers through their Year-to-Date returns. As of Jan. 29, 2025, Constellation Energy Corp is out in front with a 22.93% YTD gain, followed by MicroStrategy Inc with a rise of 20.13%. However, big players, such as Meta, saw an increase of 12.7%, and Netflix saw a +0.04% change. NVIDIA, on the other hand, saw a decline in its stock price by 11%.

MSTR’s stock price rising rises

MSTR’s stock prices have been bullish since Michael Saylor, the Chairman of MicroStrategy, announced its “21/21 Plan” in Oct. 2024.

Under the plan, MicroStrategy aims to secure $42 billion over three years — $21 billion from selling shares and $21 billion from borrowing. The objective is to purchase additional Bitcoin ($BTC) and collect annual returns from 6% to 10% on their $BTC investments during the 2025 to 2027 timeline. In the last six months, MSTR’s price has increased by 108.01%, showing a positive market sentiment for MSTR.

MSTR’s performance (August 2024 – January 2025) reflects significant volatility, with sharp gains in late 2024. Sourced from TradingView by crypto.news

Now, analysts predict that MSTR could see another 20% jump in its price. On Jan. 27, MicroStrategy bought $1.1 billion worth of $BTC, bringing the firm’s total $BTC holding to 471,107. As per MSTR’s Bitcoin Treasury report, the company has $48.23 billion worth of $BTC.

MSTR faces backlash

Previously, the largest corporate holder of $BTC faced backlash, with many analysts calling it a “Ponzi scheme“. On Dec. 31, when MSTR’s price fell by $300, analyst Martin Shkreli criticized Saylor, saying MicroStrategy heavily relies on debt and equity issuance to buy more $BTC, hence exposing shareholders to risks of diluting value.

Additionally, the Wall Street Journal reported on Jan. 24 that MicroStrategy could face an unquantified tax hit arising from a new corporate alternative minimum tax, which could hit unrealized the firm’s gains on $BTC. Should this tax go into effect, the company would have to pay federal income taxes on the increase in value of its $BTC assets. This could result in MicroStrategy being forced to liquidate a portion of its $BTC holding in order to pay taxes– an effect which can be felt on its stocks.