Here is a breakdown of MicroStrategy’s (MSTR) year-over-year growth based on market capitalization:

1. 2021:

• Market Cap: $6.14 billion

• Growth Driver: Initial significant investments in Bitcoin helped boost market sentiment and MSTR’s market value as the cryptocurrency surged.

2. 2022:

• Market Cap: $1.63 billion

• Growth: -73.42% decline

• Reason: Bitcoin’s value dropped significantly, leading to a sharp decrease in MicroStrategy’s market cap, given its heavy exposure to the cryptocurrency.

3. 2023:

• Market Cap: $10.55 billion

• Growth: +546.39%

• Driver: A rebound in Bitcoin prices combined with continued acquisitions of the cryptocurrency. MicroStrategy’s positioning as a corporate Bitcoin holder attracted more investor interest as Bitcoin recovered.

4. 2024:

• Market Cap: $43.73 billion

• Growth: +314.32%

• Driver: Bitcoin’s significant rally in 2024, increasing institutional and retail adoption of Bitcoin, and the company’s strategy of leveraging debt to acquire even more of the digital asset    .

MicroStrategy’s growth is largely tied to Bitcoin’s price performance, with surges or declines in Bitcoin directly impacting the company’s market capitalization.

MicroStrategy’s year-over-year growth from 2023 to 2024 was driven largely by its aggressive acquisition of Bitcoin. By the end of 2023, MicroStrategy held around 190,000 Bitcoins, and by mid-2024, that number had increased to over 226,000. The value of Bitcoin rose significantly during this period, contributing heavily to the company’s market cap increase from about $10.5 billion at the end of 2023 to over $43 billion by late 2024.

This growth strategy, fueled by Bitcoin holdings, led to a significant 543% increase in MicroStrategy’s stock price over the last 12 months. The company continued to issue convertible debt and equity offerings to raise funds for more Bitcoin purchases, banking on the rising cryptocurrency prices to bolster its balance sheet and stock valuation    .

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As of October 2024, MicroStrategy has a market capitalization of approximately $43.7 billion. This marks an extraordinary growth of over 300% compared to the previous year. The company’s valuation is largely driven by its significant holdings in Bitcoin, making it one of the largest corporate holders of the cryptocurrency. MicroStrategy’s strategy to leverage Bitcoin as a core asset has significantly boosted its market value, particularly as the price of Bitcoin surged throughout 2024.

In 2023, the company’s market cap was around $10.5 billion, and it grew by over 540% during that year. Much of this explosive growth has been tied to the increasing adoption and bullish performance of Bitcoin, as well as the company’s focus on transitioning into a “Bitcoin bank”  .