MicroStrategy stock has been performing exceptionally well, MicroStrategy stock price jumped on Monday following the company's addition to a major stock index.
MicroStrategy (MSTR) stock jumped nearly 5% Monday as investors reacted to the company’s latest bitcoin (BTC-USD) purchase and its upcoming addition to the Nasdaq 100.
MicroStrategy stock news: The software firm, now known for its substantial bitcoin investments, announced in a Monday morning filing that it had added another 15,350 bitcoins to its holdings, costing $1.5 billion. This brings the company's total to approximately 440,000 bitcoins.
However, despite the news, the stock experienced volatility, ending the trading day essentially unchanged.
MicroStrategy stands as the largest corporate holder of bitcoin, having strategically adopted the cryptocurrency as its main Treasury reserve asset. The company has notably accelerated its bitcoin acquisitions following Donald Trump's election, buoyed by his pro-crypto statements and appointments, which have fueled a significant rise in bitcoin's price, often referred to as the "Trump trade."
According to Bernstein analysts, about 40% of MicroStrategy's current bitcoin stash was acquired over the last 40 days. SEC filings reveal that within the last month, MicroStrategy has bought over 100,000 bitcoins for $10.5 billion.
Bitcoin reached a new peak above $106,000 on Monday, marking a more than 50% increase since Trump's election. Trump's recent statements include his intention to nominate Paul Atkins, known for his crypto-friendly stance, to head the SEC, replacing Gary Gensler, who was known for stringent regulatory measures against cryptocurrencies. Additionally, Trump plans to introduce a "crypto czar" position in the White House, with former PayPal CEO David Sacks appointed to this role to oversee bitcoin policy.
MicroStrategy's stock enjoyed an upward trajectory on Monday, partly due to the announcement of its inclusion in the Nasdaq 100. Effective December 23, MicroStrategy (MSTR) will join this prestigious index alongside Palantir (PLTR) and Axon Enterprise (AXON), taking the spots of Super Micro Computer (SMCI), Moderna (MRNA), and Illumina (ILMN).
This news comes on the heels of MicroStrategy's unique investment strategy, initiated in 2020 under the guidance of Michael Saylor. Initially serving as CEO until 2022, Saylor has since transitioned to chairman while steering the company towards significant bitcoin investments. These investments have been financed through a mix of equity, debt, and the company's own cash flows, positioning MicroStrategy as a leading corporate holder of bitcoin. This strategic shift has not only redefined the company's business model but also contributed to its recent stock performance.
Over the last five years, MicroStrategy's stock has soared by an impressive 2,700%, surpassing the returns of the top performers in the S&P 500. In comparison, Nvidia, known for its strides in artificial intelligence, saw a 2,200% increase, while Tesla, spearheaded by Elon Musk, managed a 1,600% gain, according to FactSet data.
This phenomenal growth has significantly benefited MicroStrategy's founder and chairman, Michael Saylor. His net worth has now surpassed $10 billion, positioning him as the 254th-richest person in the world. Since March, Saylor's wealth has more than doubled, reflecting his strategic focus on bitcoin and the company's performance.
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