Janice R. Andrews
MicroStrategy (MSTR) stock saw an initial rise of nearly 5% on Monday after the company announced a major bitcoin (BTC-USD) acquisition and its upcoming inclusion in the Nasdaq 100. However, the stock later reversed course, ending the day flat.
The company disclosed that it had purchased an additional 15,350 bitcoins for $1.5 billion, increasing its total bitcoin holdings to approximately 440,000. MicroStrategy, the largest corporate holder of bitcoin, continues to double down on its strategy of using the cryptocurrency as its primary Treasury reserve asset.
“We take pride in leading institutional bitcoin adoption,” said CFO Andrew Kang during an earnings call in late October.
MicroStrategy’s aggressive bitcoin buying spree has accelerated recently, with 40% of its holdings acquired in just the last 40 days. Over the past month alone, the company bought 100,000 bitcoins worth $10.5 billion, according to SEC filings.
Bitcoin also surged on Monday, hitting a new record high of over $106,000. The rally was fueled by former President Donald Trump’s crypto-friendly policies, including his nomination of pro-crypto leaders to key financial positions. Trump’s plans to appoint a “crypto czar” to oversee bitcoin policy have further boosted market optimism.
The stock received another boost from the announcement that MicroStrategy will join the Nasdaq 100 index on Dec. 23. Alongside Palantir (PLTR) and Axon Enterprise (AXON), it will replace Super Micro Computer (SMCI), Moderna (MRNA), and Illumina (ILMN).
MicroStrategy began investing in bitcoin in 2020 under then-CEO Michael Saylor, who transitioned to the role of chairman in 2022. The company has funded its purchases through a combination of equity, debt financing, and internal cash flow.
Despite its ambitious strategy, skepticism persists. Short seller Citron Research recently took a bearish position on the stock, arguing that its valuation has “completely detached from bitcoin fundamentals.”
Still, MicroStrategy’s bitcoin-driven approach has paid off for investors, with the stock up more than 580% this year. As the company expands its footprint in both the tech and crypto spaces, it remains a focal point of institutional bitcoin adoption and market momentum.
