MicroStrategy Stock [MSTR] Outperformed Bitcoin [BTC] Last Week, What's Next?

MicroStrategy's stock [MSTR] was apparently the best-performing share with Bitcoin's [BTC] exposure last week.

MicroStrategy’s stock [MSTR] recorded the best performance among Bitcoin [BTC]-linked stocks last week.

The MSTR shares rallied 34% last week and crossed the $1500 level, supported by BTC’s recovery and MicroStrategy’s inclusion in the MSCI Index. The rally continued into this week, reaching a high of $1740, adding another +4% as of 22nd May.

Overall, MSTR’s double-digit performance outpaced even Coinbase [COIN] and several Bitcoin miner stocks.

MicroStrategy stock vs other BTC-linked stocks

MicroStrategy’s stock recorded 3.6X higher gains than the largest US cryptocurrency exchange Coinbase’s stock [COIN] when adjusted on the weekly chart.

While MSTR was up 22% in the past five trading days, COIN gained only 6% over the same period.

Interestingly, collective Bitcoin miner stocks also saw double-digit gains but were slightly lower than MSTR over the same period.

Notably, the Valkyrie Bitcoin Miners ETF (WGMI), which tracks top BTC miner stocks, including Marathon Digital’s stock [MARA], recorded 12.8% gains in the past five-day trading period.

Thus, MSTR outperformed COIN and overall BTC miner stocks in the past 5-day trading sessions. However, it is also worth noting that COIN’s performance remained muted, partly due to the ongoing lawsuit with the US SEC.

MicroStrategy, under the leadership of its founder and CEO Michael Saylor, has maintained its BTC strategy.

So far, in Q2, the company added 122 BTC, bringing its total BTC war chest to 214,400 coins, valued at over $15 billion at current market prices.

Compared to the firm’s current total of 17.7 million shares as of 22nd May, its BTC per share was around 0.01209 BTC.

However, a large number of investors have flocked to MSTR, sometimes way higher than the underlying asset BTC that they are seeking exposure to.

But MSTR’s allure could be irresistible, especially when compared to BTC’s performance. MSTR outperformed BTC on a weekly, monthly and YTD (Year-to-Date) basis.

In May, MSTR was up 55% compared to BTC’s 15%. On the YTD front, MSTR’s gains were over 140%, while BTC’s value was +58%.

It meant that MSTR holders had better returns compared to their BTC counterparts. So, what’s next for MSTR’s price?

What’s next for MSTR’s price?

Source: MicroStrategy stock (MSTR), TradingView

On the daily chart, the key next bullish targets were the ATH of $1999 and $2300 based on the Fib retracement tool (yellow). The bullish reading on the RSI (Relative Strength Index) indicated that the above bullish targets were possible.

However, despite MSTR outperforming BTC on the price charts, a pullback by the king coin could erase part of the share’s gains.

At the time of writing, BTC slipped slightly below $70K after hitting the range-highs at $71K, while MSTR traded at $1650. MSTR’s further rally could be impacted if BTC extends its retracement.