MicroStrategy Surges 674% In 2024: 5 ETFs That Benefit From MSTR's Bitcoin-Driven Growth

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MicroStrategy Incorporated (NASDAQ: MSTR) has experienced an extraordinary 674% increase in its stock price year-to-date in 2024, a rally driven by its massive Bitcoin holdings and the cryptocurrency's record-breaking performance this year.

The company's Bitcoin strategy, spearheaded by Chairman Michael Saylor, has not only boosted its stock but has also resulted in over $15 billion in unrealized profit from its Bitcoin holdings.

This surge has rippled across ETFs with significant MicroStrategy exposure, enhancing their returns in a bullish market.

MicroStrategy, one of the largest corporate holders of Bitcoin, currently owns 331,000 BTC, with a cumulative acquisition cost of over $16 billion.

With the recent surge in Bitcoin prices, these holdings have soared in value, providing a staggering profit that underscores the company's high-stakes bet on cryptocurrency.

This performance has drawn increased attention to ETFs with notable stakes in MicroStrategy, as investors look to indirectly benefit from the company's gains.

The following ETFs have particularly benefited from MicroStrategy's exceptional performance, reflecting both their weightings in MSTR and their year-to-date returns:

T-Rex 2X Long MSTR Daily Target ETF (NASDAQ: MSTU):

  • MSTR Weighting: 90.14%
  • YTD Performance: 746%
  • Overview: MSTU is a leveraged ETF designed to deliver twice the daily performance of MicroStrategy's stock, giving investors amplified exposure to its monumental rally.
Bitwise Crypto Industry Innovators ETF (NASDAQ: BITQ):

  • MSTR Weighting: 14.16%
  • YTD Performance: 79%
  • Overview: BITQ focuses on leading companies in the crypto sector, with MicroStrategy as a key holding, benefiting from the company's Bitcoin-driven surge.
Schwab Crypto Thematic ETF (NASDAQ: STCE):

  • MSTR Weighting: 11.83%
  • YTD Performance: 64.5%
  • Overview: STCE targets firms innovating in blockchain and cryptocurrency, and MicroStrategy's gains have significantly boosted the ETF's overall performance.
VanEck Digital Transformation ETF (NASDAQ: DAPP):

  • MSTR Weighting: 11.03%
  • YTD Performance: 76.7%
  • Overview: DAPP invests in companies driving digital transformation through blockchain, with MicroStrategy playing a critical role in its success.
Siren Nasdaq NexGen Economy ETF (NASDAQ: BLCN):

  • MSTR Weighting: 8.04%
  • YTD Performance: 17.4%
  • Overview: BLCN focuses on blockchain economy leaders, and MicroStrategy's rise has contributed strongly to the ETF's returns.
MicroStrategy's Bitcoin-heavy strategy has propelled its market cap to $11.5 billion in U.S. ETFs, with approximately 22.03 million shares held across these funds.

As a leader in Bitcoin adoption within corporate treasuries, MicroStrategy's performance has directly influenced the success of the ETFs holding it, offering exposure to Bitcoin via a regulated equity vehicle.

The company, earlier this week, announced an increase in its convertible senior notes offering to $2.6 billion from its initial $1.75 billion, signaling its continued aggressive stance on Bitcoin accumulation.