Premarket trading for Bitcoin (BTC) drove MicroStrategy Inc. (MSTR) stock up over 6% on December 16 after Bitcoin hit a new all-time high in cryptocurrency values. Shares are also rising for a company set to join the Nasdaq-100 index, which includes the top 100 English shares and takes place on December 23.
MicroStrategy’s stock had traded above $430 at the time of writing, significantly higher than its levels earlier this year when it peaked at more than $543.
The pre-market gain is still well below that high, but that’s strong investor confidence, and many are confident that the company will grow once it’s in the Nasdaq 100. In rare cases, when a new company is added to the index, MSTR can be purchased as funds, and institutional investors want to buy shares of the new index component.
Having hit over $56,400, the buzz is certainly around MicroStrategy, a business intelligence and software firm managed by CEO Michael Saylor. With the largest corporate Bitcoin reserve in the world, the company noted for its aggressive acquisition strategy, holds a great deal of corporate Bitcoin.
Since first buying a Bitcoin in 2020, MicroStrategy has amassed 423,650 BTC, which is about $42.3 billion in value, according to Bitcoin’s price of over $106,000. Taking a long-term bullish stand on the crypto, the company’s mean price per Bitcoin has increased to $60,324 to highlight its position.
MicroStrategy’s Stock Boosted By Bitcoin’s Surge And Nasdaq-100
This latest surge in Bitcoin’s price, particularly at an all-time high of more than $106,000, adds to the positive narrative surrounding MicroStrategy’s stock. Pro-crypto comments from people like President-elect Donald Trump further buoy sentiment in the market.
In recent years, MicroStrategy’s stock has performed well, rising more than 350 percent yearly. Over the past four years, MSTR has outpaced the returns on traditional investment assets such as gold, real estate, and bonds, with an annualized return of 124%. This means that Bitcoin’s annualized return is twice as good as gold’s 7%, and bonds have posted a negative return of 5%.
“People refer to [#BTC] as currency, or digital currency and that’s an unfortunate historical artifact. It’s digital property,” says $MSTR Founder & Chairman @saylor. pic.twitter.com/1I15H8F04A
— Squawk Box (@SquawkCNBC) March 11, 2024
By December 13, MSTR was trading at $408, which will likely see a lucrative pre-day session boasting more earnings. Analysts are also watching the stock closely, as its Nasdaq 100 inclusion could act as another entry into the S&P 500 index and strengthen its position as a leader in the tech and cryptocurrency space.
MicroStrategy has grown more influential in the market as Bitcoin holdings continue growing, attracting the attention of cryptocurrency enthusiasts and institutional investors. MicroStrategy’s outlook is extremely bullish, and its recent performance is also extremely bullish, with the company’s stock increasing as a result of Bitcoin’s gains and the near future impending Nasdaq-100 listing.
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