MicroStrategy’s Disappointing December Doesn’t Stop It from Leading 2024 Bitcoin-Correlated Asset Rankings.

MicroStrategy’s Resilient 2024 Performance Surpasses Other Crypto-Tied Assets in Traditional Finance

MicroStrategy (MSTR), the software company that has become a major bitcoin (BTC) accumulator, has experienced a turbulent December, with its stock plummeting nearly 50% since November. This drop followed the company’s entry into the Nasdaq 100 index and a remarkable 600% surge in stock value earlier in the year. Nevertheless, the Tysons Corner, Virginia-based firm has still posted an impressive 342% return in 2024, outperforming most crypto-related assets within traditional finance (TradFi).

The year has been marked by significant volatility, influenced by geopolitical shifts and technological advancements that have shaken financial markets. Conflicts in Eastern Europe and the Middle East, worldwide elections, the unwinding of the yen carry trade in August, and the rapid expansion of artificial intelligence (AI) have all left their mark on global markets.

Despite its recent struggles, MicroStrategy’s 342% return is nearly double that of Nvidia (NVDA), the semiconductor company that saw a 185% increase, largely due to the booming demand for chips used in AI applications. Other major tech players like Meta Platforms (META) reported a 71% gain. Meanwhile, Bitcoin itself soared by 100% in 2024, boosted by the approval of U.S. spot exchange-traded funds (ETFs) in January, as well as several all-time highs. Bitcoin far outpaced its competitors, ether (ETH), which rose 42%, and Solana (SOL), which gained 79%.

Among ETFs, the iShares Bitcoin Trust (IBIT) surged over 100%, becoming the fastest ETF to hit $50 billion in assets under management.

While Bitcoin miners as a whole underperformed, a few individual companies saw strong growth. The Valkyrie Bitcoin Miners ETF (WGMI), tracking mining stocks, rose just under 30%. However, companies like Bitdeer (BTDR) and WULF (WULF) posted gains of 151% and 131%, respectively. This was despite the sector’s overall lackluster performance, which still managed to outpace the broader equity market.

The tech-heavy Nasdaq 100 Index (NDX) rose 28%, while the S&P 500 Index (SPX) gained 25%, trailing behind gold’s impressive 27% rise. Gold has now outperformed equities in three of the past five years.

In the bond market, concerns about U.S. inflation and budget deficits led to a sharp rise in U.S. treasury yields. The yield on the 10-year Treasury climbed by 15% to reach 4.5%, surprising many as it spiked 100 basis points since the Federal Reserve began cutting interest rates in September.

The iShares 20+ Year Treasury Bond ETF (TLT) dropped 10% in 2024, adding to a 40% loss over the past five years.

The U.S. dollar (DXY Index) ended the year strong, hitting its highest level since September 2022, signaling investor confidence. Meanwhile, West Texas Intermediate (USOIL) closed the year with a marginal increase, up less than 1% to around $71 per barrel. Oil prices saw significant fluctuations, briefly touching $90 at times.

As we move into 2025, key issues like the U.S. debt ceiling debate, the impact of President-elect Donald Trump’s policies, and the ongoing U.S. economic growth story will dominate market discussions.