MicroStrategy Stock Surges 6.5% as Bitcoin Hits New ATH and Nasdaq-100 Inclusion Looms

MicroStrategy stock surged by 6.5% in pre-market trading on December 16, 2024, as cryptocurrencies, particularly Bitcoin, continue to see notable gains, with Bitcoin reaching a new all-time high. The rise in MicroStrategy’s stock price also comes as the company prepares for its inclusion in the prestigious Nasdaq-100 index.

As of the pre-market surge, MicroStrategy’s stock price was trading above $430, even though it remains below its recent peak above $543. This momentum follows the announcement that MicroStrategy, a prominent corporate holder of Bitcoin, will be added to the Nasdaq-100 index on December 23. The listing is expected to bring further buying pressure as funds typically purchase shares of newly added components, potentially fueling more upward movement in MicroStrategy’s stock.

Over the past year, the company has seen remarkable growth, driven by Bitcoin’s increasing value. MicroStrategy, led by Michael Saylor, began acquiring Bitcoin in 2020 and has since accumulated an impressive 423,650 BTC, worth approximately $42.3 billion at Bitcoin’s current price of over $106,000. The company’s Bitcoin holdings were acquired for around $25.6 billion, with an average purchase price of $60,324 per Bitcoin.

This surge in Bitcoin’s value has been a major catalyst for the stock’s performance. In fact, MicroStrategy stock has skyrocketed by more than 350% year-to-date, outperforming major benchmarks such as the S&P 500, gold, real estate, and bonds. Over the past four years, MicroStrategy’s annualized return has been 124%, compared to Bitcoin’s 64%, the S&P 500’s 15%, and gold’s modest 7%. Bonds, in contrast, have shown a negative return of -5%.

MicroStrategy’s adoption of Bitcoin as part of its corporate treasury has positioned the company as a leader in the space, influencing other publicly traded companies to consider Bitcoin as part of their financial strategies. Michael Saylor, the company’s founder and chairman, has consistently touted Bitcoin as a “digital property,” further solidifying its role in MicroStrategy’s long-term business model.

Looking ahead, the company’s inclusion in the Nasdaq-100 index has analysts speculating that it could soon be added to the S&P 500. The strong performance of MSTR stock, driven by both the rise in Bitcoin and the company’s strategic moves, has put it in a favorable position to continue outperforming its peers.

As of the latest data, MicroStrategy’s stock was trading above $431, further fueled by the broader market optimism surrounding Bitcoin’s performance and the company’s growing prominence in the digital asset space.