Shares of MicroStrategy (MSTR) surged 6.53% in Monday's pre-market trading, fueled by two significant events - the company's addition to the prestigious Nasdaq 100 index and its latest massive Bitcoin purchase.
MicroStrategy, the largest corporate holder of Bitcoin, will join the Nasdaq 100 index on December 23rd, 2024. This milestone event is expected to generate substantial inflows from exchange-traded funds (ETFs) and other investment vehicles that track the index, potentially boosting MicroStrategy's market value and providing additional financial flexibility to continue its aggressive Bitcoin acquisition strategy.
Adding to the bullish sentiment, MicroStrategy announced on Monday that it had acquired an additional 15,350 bitcoins for approximately $1.5 billion during the period of December 9 to December 15, at an average price of $100,386 per Bitcoin. This latest purchase brings MicroStrategy's total Bitcoin holdings to an impressive 439,000 BTC, valued at around $45 billion.
MicroStrategy's unwavering commitment to accumulating Bitcoin as its primary treasury reserve asset has solidified its position as a proxy for the world's largest cryptocurrency. The company's stock price has surged over 500% in 2024, largely driven by its massive Bitcoin investments and the cryptocurrency's impressive rally.
Michael Saylor, MicroStrategy's Executive Chairman, remains a vocal advocate for Bitcoin adoption, emphasizing the long-term value of Bitcoin as a "digital capital asset" and a hedge against fiat currency devaluation and inflation.