MicroStrategy Stock Lags Bitcoin by 227% Despite Crypto Boom

MicroStrategy's stock price, denoted as MSTR, has diverged from the trajectory of Bitcoin, sparking investor concerns about its "lagging" performance. Since August 2020, MicroStrategy has allocated a significant portion of its resources to Bitcoin, positioning MSTR as a leveraged proxy for the cryptocurrency. However, the investment community has widely noted that MSTR's stock price lags behind Bitcoin's performance.

In 2025, Bitcoin continued to set new historical highs, reaching $124,277.5 on August 14. In contrast, MSTR's peak was $543 per share on November 21, 2024. This discrepancy has led to the development of the "ballistic acceleration model" by Marty Kendall at the end of 2024 to explain the price differences between MSTR and Bitcoin.

The COVID-19 pandemic significantly increased the number of retail investors globally. The number of global cryptocurrency holders tripled in 2021, rising from approximately 100 million to over 300 million. Between 2022 and 2024, the number of cryptocurrency holders doubled again. This surge in retail investment was driven by multiple factors, including large-scale fiscal stimulus programs implemented by various governments in 2020, which injected liquidity into households. Additionally, pandemic lockdowns increased individuals' disposable time. Brokerages and cryptocurrency exchanges lowered the barrier to entry by offering zero-commission or low-commission models and instant account openings. Post-pandemic, stock and digital asset prices in various regions saw significant returns, attracting investors driven by the fear of missing out (FOMO) on potential gains.