MicroStrategy stock has outperformed every company in the S&P 500 index since 2020, fueling market expectations for continued bullish momentum.
Shares of MicroStrategy have seen significant growth over the past four years, according to onchain intelligence firm Arkham.
The intelligence firm wrote in an Oct. 14 X post:
“Microstrategy has outperformed every company in the S&P 500 since August 2020.”
MicroStrategy flows. Source: Arkham Intelligence
The data comes nearly three weeks after leveraged MicroStrategy exchange-traded funds (ETFs) surpassed $400 million in net assets driven by retail investor appetite for leveraged Bitcoin (BTC) exposure, Cointelegraph reported on Sept. 27.
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MicroStrategy is one of the first publicly traded companies to hold Bitcoin on its balance sheet.
MicroStrategy headed for more upside momentum — Analyst
MicroStrategy stock could be headed for more upside momentum, according to popular crypto analyst Tyler Durden.
In an Oct. 16 X post, Durden shared the chart below and stated:
“The secret Wall Street doesn’t want you to know is - the bigger the grey box, the bigger the bounce.”
MicroStrategy/WETH, two-hour chart. Source: Tyler
His analysis suggests that MicroStrategy stock could continue to rise. Over the past four years, MicroStrategy’s price surged by more than 1,540%, while the S&P 500 grew by just 111%, according to Nasdaq and Vantage data.
MicroStrategy vs. S&P 500, four-year chart. Source: TradingView
MicroStrategy S&P 500 unlikely anytime soon
Despite MicroStrategy’s strong performance, the company is unlikely to be added to the S&P 500 index soon, according to market participants.
An S&P 500 listing is “probably not” coming anytime soon, Seoyoung Kim, associate professor of finance at Santa Clara University’s Leavey School of Business, told Cointelegraph.
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What is concerning for MicroStrategy is that a candidate for listing on the S&P 500 must have been profitable in the most recent year and quarter to qualify.
According to Kim, “MicroStrategy has consistently seen a negative bottom line,” with the exception of the fourth quarter of 2023, “which was insufficient to bring it to an overall positive net income.”
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