The launch of BlackRock’s iShares Bitcoin Trust (IBIT) was nothing short of sensational, heralding a new trend in the cryptocurrency industry. With assets under management (AUM) of $17.24 billion and a market cap of $23.02 billion, IBIT has quickly become a heavyweight in the market.
Starting at a price of $27.96, IBIT has now surged to $36.64, indicating a remarkable 31.04% rise. This performance has caught the attention of investors and industry experts alike. Recently, comparisons have been drawn between the IBIT market and that of MicroStrategy. The results may astonish you.
MicroStrategy Market Growth: A General Analysis
At the beginning of the year, MicroStrategy’s stock price was approximately $69.16. The company experienced strong upward momentum between late January and late March, reaching a yearly peak of $195.15. However, the price slipped to a low of $101 on May 24.
Despite attempts in late May and late July to elevate the price, MicroStrategy failed to cross the significant $190 mark. Currently, the price stands at $153.88, reflecting at least a 122% growth this year—far outpacing the growth rate achieved by BlackRock’s iShares Bitcoin Trust.
Why MicroStrategy Outperforms IBIT?
When analyzing the MicroStrategy market, it is crucial to consider its substantial Bitcoin holdings, which amount to approximately 252,000 Bitcoins. Unlike IBIT, MicroStrategy does not charge any management fees, making it more cost-effective. In contrast, the iShares Bitcoin Trust imposes a 0.25% expense ratio.
Another key factor contributing to MicroStrategy’s outperformance is its diversified business model. This diversification makes MicroStrategy less susceptible to Bitcoin market fluctuations compared to the IBIT ETF, which relies almost entirely on the BTC market.
Financial Flexibility Gives MicroStrategy an Edge
MicroStrategy enjoys the freedom to explore various innovative possibilities, such as raising funds through convertible note offerings. Currently, IBIT cannot explore these avenues. IBIT’s net flow this year stands at $20.92 billion, with a net flow of $7.6 billion in the last six months and at least $379.63 million in net flows in the past month alone.
In conclusion, while the IBIT ETF has captured the hearts of the cryptocurrency community and attracted numerous investors, MicroStrategy has managed to outperform its competitor’s fresh appeal. This success can be attributed to its cost-effective status, higher degree of separation from BTC price volatility, and ability to implement innovative business strategies.
Stay tuned to Coinpedia for more intriguing comparative analyses!
