MicroStrategy Stock Outperforms S&P 500 Since 2020

According to Cointelegraph, MicroStrategy stock has outperformed every company in the S&P 500 index since August 2020, fueling market expectations for continued bullish momentum. Shares of MicroStrategy have seen significant growth over the past four years, as reported by onchain intelligence firm Arkham. The intelligence firm highlighted this performance in an Oct. 14 X post, noting the company's impressive gains. This 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. MicroStrategy is one of the first publicly traded companies to hold Bitcoin on its balance sheet, which has contributed to its stock's significant growth. Popular crypto analyst Tyler Durden suggests that MicroStrategy stock could be headed for more upside momentum. In an Oct. 16 X post, Durden shared a chart and stated that the 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 data from Nasdaq and Vantage. Despite MicroStrategy’s strong performance, the company is unlikely to be added to the S&P 500 index soon, according to market participants. Seoyoung Kim, associate professor of finance at Santa Clara University’s Leavey School of Business, told Cointelegraph that an S&P 500 listing is “probably not” coming anytime soon. A candidate for listing on the S&P 500 must have been profitable in the most recent year and quarter to qualify. Kim noted that 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.