Following the announcement by Nasdaq of MicroStrategy‘s (MSTR) inclusion in the Nasdaq-100 index (NDX), the company’s shares experienced a significant uptick, rising over 5% to $428 and change in premarket trading on Monday. This milestone places MicroStrategy in the company of major tech giants, further solidifying its role as a de facto Bitcoin (BTC-USD) proxy for investors seeking exposure to the cryptocurrency market without directly purchasing the digital asset.
In parallel, MicroStrategy announced the acquisition of an additional 15,350 Bitcoins for approximately $1.5 billion, at an average price of $100,386 per Bitcoin. This move not only enhances its status as the largest corporate holder of Bitcoin but also increases its total hodlings to 439,000 Bitcoins. Michael Saylor, the firm’s founder and chairman, shared this development on X signaling the company’s ongoing commitment to cryptocurrency investment.
MicroStrategy has acquired 15,350 BTC for ~$1.5 billion at ~$100,386 per #bitcoin and has achieved BTC Yield of 46.4% QTD and 72.4% YTD. As of 12/15/2024, we hodl 439,000 $BTC acquired for ~$27.1 billion at ~$61,725 per bitcoin. $MSTR https://t.co/SaWLNBVkrl
— Michael Saylor⚡️ (@saylor) December 16, 2024
The crypto market responded with Bitcoin briefly surpassing $106,000 and printing a new ATH of $106,488.25 before settling around the $104K level. This volatility comes as the market anticipates the Federal Reserve’s upcoming decision on interest rates, which could influence the valuation of risk assets like Bitcoin.
MicroStrategy’s dual announcements underscore a strategic focus on cryptocurrency, showcasing its aggressive acquisition strategy and its integration into a prestigious index. The company’s stock performance reflects this strategy, with an incredible year-to-date increase of nearly 570%. This growth trajectory not only highlights the market’s confidence in MicroStrategy’s vision but also in the broader acceptance and valuation of Bitcoin as an institutional investment.
These developments are pivotal for MicroStrategy, enhancing its position in both the tech and crypto landscapes. The inclusion in the Nasdaq-100 not only brings more visibility and potentially more investment, but it also positions MicroStrategy as a bellwether for crypto within traditional investment circles. Meanwhile, the substantial Bitcoin purchases continue to be a testament to Saylor’s belief in Bitcoin’s long-term value, potentially setting a precedent for how companies might allocate their reserves in the future.
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