Prominent trader Peter Brandt has weighed in on the recent surge in MicroStrategy’s stock price in relation to the price of Bitcoin. The business intelligence company’s shares have been rising steadily, bringing the premium to the value of its BTC holdings to its highest level in over three years.
Since the launch of Bitcoin ETFs in January, MicroStrategy stock has increased by over 240%, surpassing Bitcoin’s performance by eight times. However, Brandt advises caution, stating that the chart for MicroStrategy looks volatile and that it will ultimately trend with Bitcoin. He believes that the two are still closely linked, and MicroStrategy’s long-term performance will depend on Bitcoin’s trajectory.
At the time of writing, Bitcoin is up 3.11% in the last 24 hours, trading at $62,729. MicroStrategy’s premium has also increased, with its stock rising 11% to a 25-year high, surpassing Bitcoin’s 3% rise. The company holds over 252,000 BTC, worth nearly $9.9 billion, and its net asset value premium has reached its highest level since February 2021.
The ratio of MicroStrategy’s stock price to Bitcoin price is also at its highest since the company started adopting Bitcoin in August 2020. Additionally, MicroStrategy has raised its “Bitcoin Yield” KPI to 5.1% from 4.4% in Q2 2024. Overall, despite the recent disconnect between MicroStrategy’s stock price and Bitcoin’s performance, experts like Brandt anticipate a return to a closer correlation in the future.