MicroStrategy’s Market Cap Surpasses Coinbase: Is BTC raise?

• MicroStrategy overtakes Coinbase in market cap, shifting the landscape of crypto companies.
• A major Bitcoin fund plan strengthens MicroStrategy’s position as the largest corporate BTC holder.
• MicroStrategy’s stocks gain surpasses Microsoft, highlighting the impact of its Bitcoin strategy.

MicroStrategy Inc. has overtaken Coinbase Global Inc. in market capitalization, marking a shift in the ranking of crypto firms. Reports indicate MicroStrategy’s valuation reached $49.77 billion, surpassing Coinbase’ $47.91 billion.

This increase in valuation follows MicroStrategy’s announcement of a substantial fundraising goal dedicated entirely to Bitcoin purchases.

MicroStrategy’s Bitcoin-Focused Strategy Drives Growth

MicroStrategy’s market rise is linked to its plan to raise $42 billion over the next three years, a fund reserved for expanding its Bitcoin holdings. Since announcing this on October 30, the company’s stock has increased in value.

Read also: MicroStrategy’s Bitcoin Strategy Drives 1,218% Stock Surge to All-Time High

MicroStrategy’s Bitcoin acquisition strategy, led by CEO Michael Saylor, has made the company the largest corporate holder of Bitcoin, with a total of 252,220 BTC valued at approximately $17 billion at current prices.

Coinbase Faces Market Cap Pressure

Coinbase, which traditionally has had a higher market cap than MicroStrategy, has been facing revenue and growth pressures due to regulatory costs and shifting fee structures in the competitive crypto exchange sector.

These factors, combined with market volatility, have led to Coinbase’s decline, allowing MicroStrategy to take the lead.

Read also: MicroStrategy to Invest $42B More in Bitcoin

While Coinbase remains a player in the crypto exchange market, centralized exchanges’ financial and operational challenges continue to impact its valuation, particularly as the company navigates the rising regulatory environment and increased competition.

MicroStrategy has also outperformed tech giant Microsoft in 25-year stock gains. Since its Nasdaq debut, MicroStrategy’s share value has grown by approximately 1,570%, compared to Microsoft’s 1,467% over the same period.

This achievement shows the impact of MicroStrategy’s Bitcoin investment approach, which, as of October 25, had pushed its stock to a 25-year high of $236.

The increase in MicroStrategy’s stock follows a six-week rally linked to Bitcoin’s recent upward price movement. The crypto asset’s price has climbed by 2.08% over the past week to $69,506.29.