Key facts:
-
MicroStrategy is the publicly traded company that has accumulated the most Bitcoin in its treasury.
-
Nvidia produces GPUs, which are essential in the artificial intelligence industry.
The stock performances of MicroStrategy (MSTR) and Nvidia (NVDA) have allowed us to draw conclusions about investor preferences.
So far this year, the shares of both companies have shown high growth, reflecting the value that the market perceives in their strategies.
Stock prices, considered a barometer of corporate value, have been influenced by strong company fundamentals, but MicroStrategy has managed to stand out in the technology market. With a growth of 1,113%, it surpassed Nvidia’s 1,059%ranking among the top 10 stock performances in the S&P 500, one of the most important stock market indices in the United States, as seen in the following chart.
Top 10 fastest-growing stocks in the S&P 500 index. Source: FactSet.
MicroStrategy, founded in 1989 by Michael Saylor and Sanju Bansal, is dedicated to the development of technology and business intelligence, creating software that facilitates data processing and storage.
However, Its remarkable stock market performance is closely linked to its aggressive adoption of bitcoin Since 2020, it has become the publicly traded company that holds the largest amount of bitcoin in its treasury, totaling 226,500 BTC, according to Bitcoin Treasuries.
In the last year, MicroStrategy shares have risen 284%, As you can see in the following graph, TradingViewreaching a market capitalization of $25 billion.
MSTR stock price. Source: TradingView.
Since 2019, the total revaluation of its shares has been 861%, consolidating it among the ten best-performing stocks.
An ETF boosts MicroStrategy
This success may be boosted by the recent launch of a leveraged ETF long (bullish positions) focused on the company, issued two weeks ago, as reported reported CryptoNews.
The leveraged effect of this ETF This means that investors can see their profits or losses nearly doubled (since the leverage is 1.75x) depending on the movement of MicroStrategy shares.
This could appeal to investors looking for higher volatility and return potential, although it also carries a high risk.
Bloomberg Intelligence ETF specialist Eric Balchunas, pointed out that this new fund, in its first six daysmanaged to gather assets worth 127 million dollarsas seen in the following graph.
MicroStrategy ETF performance. Source: Eric Balchunas.
Moreover, the daily trading volume exceeded $100 million, which is a sign of high liquidity and trading activity. “A surprisingly fast grassroots success,” Balchunas detailed.
High volatility is characteristic of leveraged ETFs. In this case, MSTX experienced a 20% rise in a single day and a 10% fall the next day, reflecting the ETF’s sensitivity to market movements, the specialist explained.
Nvidia strengthens its position thanks to artificial intelligence
On the other hand, Nvidia has seen significant growth thanks to the rise of artificial intelligenceespecially after OpenAI released ChatGPT.
This growth has been so remarkable that Nvidia has surpassed Microsoft, becoming the second most valuable company in the world, behind only Apple, according to Companiesmarketcap.
NVDA’s market cap stands at $3 trillion, while its shares have increased by 168% over the past year. This can be seen in the following chart: TradingView.
Nvidia price. Source: TradingView.
The company, recognized as one of the largest manufacturers of graphics cardshas focused its efforts on its new A100 chips, designed specifically for artificial intelligence. ChatGPT, the most popular AI at the moment, is estimated to use between 10,000 and 30,000 of these A100 GPUs.
In its latest quarterly report, Nvidia reported revenue of $26 billionrepresenting an 18% increase over the previous quarter and an impressive 262% compared to last year, as reported by reported CryptoNews.
The results Nvidia will reveal today are expected to reflect another period of solid growthwhich could have a significant impact on the US stock market and, possibly in the prices of cryptoassets related to artificial intelligence.
In fact, in anticipation of positive company results, two AI-linked tokens were launched yesterday led the weekly rise of digital assets: Artificial Superintelligence Alliance (FET) and Render (RNDR).
While MicroStrategy is riding the power of Bitcoin and gaining more attention from investors, Nvidia is consolidating its leadership in artificial intelligence, thus showing the different directions in which the market is directing its attention and resources.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.