How Bitcoin holdings drove MicroStrategy’s 380% stock surge

• MicroStrategy’s stock MSTR led the market with triple-digit gains in H1
• Solid H1 rally, increased regulatory clarity, upcoming ETH ETF, and expected Fed rate cuts are key catalysts for H2 2024

Crypto-related equities and Bitcoin [BTC] miners stocks emerged as the biggest winners in the first half of the year, led by MicroStrategy’s stock [MSTR], which posted triple-digit gains. 

As per CCData’s recent report, ‘2024 H2 Outlook,’ MSTR posted a whopping 380%, which the report linked to its massive BTC holdings. 

“MicroStrategy led with a 380% rise in stock price, driven by its 214,000 Bitcoin holdings now worth $13.3bn, purchased at an average cost of $35,158. These holdings have earned the company approximately $6.54bn since 2020.”

BTC miner stocks and overall market performance

Additionally, other crypto-related stocks like Coinbase [COIN] and Robinhood [HOOD] also posted impressive surges, rising by 329% and 122%, respectively, according to the report. 

Crypto mining stocks also recorded a remarkable recovery. After April’s halving event, stocks like Hut 8 Corp [HUT] and Bitfarms Ltd [BITF] rallied by 86% and 34%, respectively, outperforming the king coin. For its part, over the same period, it fell by 3.2%. 

Source: CCData

As far as spot BTC ETFs are concerned, the report noted that the products have ‘enhanced institutional adoption.’ These products have attracted, 

“$14.41billion in inflows and pushing the total net assets to $53.56bn. These ETFs now represent about 4.4% of Bitcoin’s total market cap. The IBIT ETF alone has drawn nearly $17.64bn, capturing over 1.5% of Bitcoin’s market cap.”

CEX markets share dynamics

Massive growth was seen in the centralized exchange (CEX) sector too, with the first half (H1) netting an aggregate spot volume of $10.6 trillion – A 145% hike from H2 2023. 

Source: CCData

On the market share front, the report added, 

“Bitget, Crypto.com, and Bybit have seen the largest increases of 38.4%, 24.6%, and 22.2%, respectively, while Coinbase experienced minor declines of around 6.0%.”

Bitcoin and crypto markets: H2 2024 outlook

The report underscored that H1’s performance could be a solid foundation for an even better H2. Notably, it viewed the expected Fed interest rate cuts later in 2024 and the upcoming launch of the Ethereum [ETH]

Additionally, increasing regulatory clarity in the U.S and EU (through MiCA) are crucial catalysts for H2 too. In fact, AMBCrypto’s recent July outlook report echoed these bullish prospects, especially for BTC and memecoins.