MicroStrategy’s Trading Volume Rivals That of the Top 7 U.S. Tech Stocks

MicroStrategy’s Trading Volume Rivals That of the Top 7 U.S. Tech Stocks

MicroStrategy: A Small-Cap Stock with Big-Tech Trading Volume and Volatility

MicroStrategy (MSTR), a Bitcoin (BTC) development company, stands out as one of the most volatile and heavily traded equities despite its relatively small market capitalization of under $100 billion.

Key Points:

• High Trading Volume:
  MicroStrategy’s trading volume is remarkable, averaging nearly 24 million shares daily between Dec. 2, 2024, and Jan. 7, 2025. This places it sixth among the "magnificent seven" tech stocks, surpassing Microsoft (20 million daily trades) and META (12.2 million). NVIDIA leads the group, followed by Tesla.

• Market Cap Disparity:
  The "magnificent seven" tech stocks, including Apple, NVIDIA, and Microsoft, all boast market caps exceeding $1 trillion—more than ten times that of MicroStrategy. Yet, MicroStrategy's trading volume rivals these giants.

• Volatility Leader:
  MicroStrategy’s 30-day implied volatility (IV) is 104, significantly higher than iShares Bitcoin Trust's (IBIT) IV of 60, making it 1.7 times more volatile. As of Jan. 7, MSTR had the highest IV30 (105) among major tech stocks, outpacing Tesla, the next closest, with an IV30 of 71.

• Performance:
  Year-to-date, MicroStrategy is up about 14%, underscoring its appeal to traders seeking high-risk, high-reward opportunities.

This combination of high trading volume and extreme volatility highlights MicroStrategy’s unique position in the market, offering opportunities for active traders while underscoring the risks associated with such a dynamic stock.