Strategy (formerly MicroStrategy) has achieved another significant milestone as it hit a record market capitalization of $128.52 billion, largely fueled by Bitcoin’s latest price surge.
As per the company’s Chairman and Co-founder Michael Saylor’s social media post, its stock (MSTR) closed at $455.90 on July 16, gaining 3.07% in a single day. Over the past three months, the stock has jumped 46%, and it’s up 174% year-over-year.
Trading at $118,286 right now, Bitcoin is rising tremendously since the past few days. Consequently, the value of Strategy has increased to unprecedented levels.
Moreover, Strategy now holds 601,550 BTC, worth about $72.12 million. This represents 11% of the firm’s total net asset value. The recent acquisition of 4,225 BTC for $472.5 million on July 14 further strengthened its position.
Volatility and Valuation Metrics Draw Attention
Besides the massive BTC holdings, Strategy maintains an enterprise value of $140.2 billion. Its daily trading volume averages $4.76 billion, with a 30-day average at $5.14 billion. However, the stock remains highly volatile. Implied volatility is at 57%, with a 30-day historic volatility of 49%, and one-year volatility stands at 94%.
Additionally, Strategy’s debt totals $8.22 billion. This is 11% of its Bitcoin net asset value (NAV). Despite the risk, big players like Vanguard Group have become top shareholders of the company. This comes despite their earlier criticism of Bitcoin as “immature.”
S&P 500 Prospects and Future Outlook
Strategy has now qualified for the S&P 500 for 11 consecutive days. Jeff Walton from Strive Funds sees this as a sign of future dominance. He predicts the company could soon become the top publicly traded equity. Strategy’s next earnings report is due August 5, which may confirm this upward trend.
Also Read: Strategy (MSTR) Would Be Fine Even If Bitcoin Price Crash to $20K
