MicroStrategy Valuation Peak Mirrors IBIT Options Debut
The introduction of options on BlackRock’s iShares Bitcoin Trust (IBIT) on Nov. 19 marked a turning point for bitcoin-linked instruments, with first-day trading volumes exceeding $2 billion. The event also coincided with MicroStrategy (MSTR) reaching its valuation cycle high.
On Nov. 20, MicroStrategy’s multiple to net asset value (mNAV)—its enterprise value relative to its bitcoin holdings—hit 3.141. The peak occurred as bitcoin approached $100,000 and MSTR shares climbed to an all-time high of $540.
Momentum has since reversed. MSTR is down about 40%, with its mNAV compressing to 1.55. At the height of its run, the firm held 331,200 BTC, representing an increase of more than 305,000 coins from earlier holdings.
MicroStrategy has long acted as a leveraged proxy for bitcoin, combining equity exposure with direct asset ownership and offering traders a vehicle for both directional bets and options strategies. By contrast, IBIT provides straightforward spot bitcoin access, catering to investors seeking simpler exposure.
Still, MicroStrategy has significantly outperformed since the rollout of spot bitcoin ETFs in January 2024. The stock has advanced over 515%, compared with IBIT’s 128% gain, while maintaining higher levels of trading activity and volatility.
At present, bitcoin implied volatility is sitting below 40, a relatively calm backdrop that dampens demand for leveraged strategies. For instruments like MSTR to regain momentum, volatility in bitcoin markets will likely need to rise.
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