MicroStrategy shares surged over 6% in pre-market trading as cryptocurrencies experience upward momentum, driven by Bitcoin’s ascension to a new all-time high.
The price of MicroStrategy stock is also climbing in response to the announcement that this leading corporate Bitcoin holder (BTC) will be included in the Nasdaq-100 index.
Despite MSTR stock trading below its recent high of over $543, the pre-market increase on December 16 has elevated MicroStrategy shares above $430. Anticipation surrounding the upcoming Nasdaq 100 listing is creating a highly positive sentiment towards the BTC-centric business intelligence and software firm.
In a Friday announcement, Nasdaq revealed that MSTR’s inclusion in the index will take effect on December 23. The buying pressure that typically accompanies such listings, as investment funds acquire the new component, could drive further price increases for MicroStrategy.
Over the past year, MSTR has seen exponential growth, fueled by the rising price of BTC, which has contributed to a bullish trend for crypto-related stocks. MicroStrategy has led the charge for adopting Bitcoin as a corporate treasury asset, first adding the cryptocurrency to its balance sheet back in 2020.
Since that time, under the guidance of Michael Saylor, the company has amassed an impressive 423,650 BTC, totaling around $25.6 billion. The average purchase price for these holdings is $60,324 per bitcoin, which, with Bitcoin priced over $100k, would put their total value at approximately $42.3 billion.
Significantly, the leading cryptocurrency recently achieved a new all-time high of over $106k, further bolstered by pro-crypto remarks from President-elect Donald Trump.
MicroStrategy stock has exploded by more than 350% year-to-date. In the last four years, MSTR has outshone the S&P 500, gold, real estate, and bonds. Its annualized performance has been recorded at 124%, while Bitcoin stands at 64%, the S&P 500 at 15%, and real estate at 10%.
During this period, as of December 13, gold has posted an annualized return of merely 7%, while bonds have returned -5%. Founder and Chairman Michael Saylor, who considers Bitcoin as ‘digital property’, shared these performance insights on X.
Analysts are optimistic about MicroStrategy’s Bitcoin strategy, suggesting that it may continue to outpace its competitors in the market. The addition of MSTR to the Nasdaq-100 has experts speculating that it could soon be included in the S&P 500 as well.
MSTR shares closed at $408 on December 13 and were trading above $431 at the time of writing.
