Institutional money flows into MicroStrategy on growth outlook
Wall Street is interested in MSTR
The number of institutional holders of MicroStrategy shares increased from 667 to 738 in the last quarter, with their total declared value reaching $15.3 billion.
According to The Block, Vanguard Group, the world’s second-largest asset management firm, and Capital International Investors each acquired nearly 16 million MicroStrategy shares in Q3, marking a 1000% increase in their MSTR holdings.
Investment banking giant Morgan Stanley purchased 8 million shares, representing a 500% quarterly increase. Meanwhile, Goldman Sachs and Bank of America added smaller amounts (696,000 and 766,000 shares respectively), following substantial purchases in the previous quarter. State Street and Susquehanna also acquired a combined 5.3 million MSTR shares.
Bitcoin's price has risen nearly 110% year-to-date, but this performance trails behind MicroStrategy shares, which have surged 450% in the same period.
Why MicroStrategy's stock outpaces Bitcoin growth
MicroStrategy’s stock exhibits higher growth dynamics compared to Bitcoin’s price due to the company’s unique strategy. The firm actively accumulates Bitcoin, making it a cornerstone of its corporate strategy. Investors see MicroStrategy shares as a way to indirectly invest in Bitcoin with added growth potential through effective capital management and the use of leverage to expand BTC reserves.
For instance, during bullish market periods, investors can observe the leverage effect: an increase in Bitcoin’s price leads to a disproportionately higher rise in the company’s valuation. This makes MicroStrategy’s stock more volatile but also potentially more profitable.
Additionally, MicroStrategy enjoys a market premium for being a pioneer among public companies using Bitcoin as a strategic asset. Investors consider the company’s future potential earnings from increasing institutional adoption of Bitcoin and the emergence of regulated instruments like ETFs.
MicroStrategy’s success has inspired other companies to adopt similar strategies, further boosting confidence in the approach and driving interest in its shares.
Previously, Jeff Park, head of strategies at Bitwise Alpha, highlighted MicroStrategy (MSTR) stock as a key strategic and investment opportunity.
