The dependence of MicroStrategy’s share price on the bitcoin price has reached a record high

According to the MSTR-tracker service, the correlation coefficient between the share price of MicroStrategy and Bitcoin has reached an all-time high. This indicates a direct dependence of the value of the organization on the dynamics of the cryptocurrency. Moreover, for the first time in history, the company’s stock price (in terms of 100x MSTR/BTC) has reached a correlation of 0.5. This convergence of indicators demonstrates how closely related the company’s strategies are to the Bitcoin cryptocurrency market. MicroStrategy is actively buying digital coins, using them as a key asset to increase capitalization. This makes shareholders increasingly dependent on the market volatility of the bitcoin exchange rate.

Amid this trend, the company’s share price premium over its net crypto assets (NAV) has reached 3.4. Since the beginning of the year, this figure has increased by about 197%. This result indicates the strong belief of investors in the future profitability of the institution, even despite the instability of the cryptocurrency market.

Analysts believe that such a high level of premium is explained by expectations of continued growth in the price of Bitcoin. At the same time, it could be a risky approach if the market faces a major correction. The high premium also reflects the interest of investors in the company, which has become a kind of analog of ETF on Bitcoin for participants of the traditional stock market. Further dynamics will depend on the behavior of Bitcoin. If the price continues to grow, the dynamics of MicroStrategy shares may exceed expectations. However, in the case of a decline in the quotation of cryptocurrency, the company may face a sharp decline in the value of securities, given the high dependence of digital coins on this . Thus, MicroStrategy shares become an important indicator of institutional investor sentiment. Correlation with Bitcoin makes the company a kind of bridge between the traditional market and cryptoeconomy.