Microstrategy surges 6.5% in pre-market trading

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As a seasoned crypto investor and observer of the market, I find myself increasingly impressed by MicroStrategy’s strategic moves in embracing Bitcoin as a corporate treasury. Having witnessed the transformation of this company from a mere $0.42 stock to its current price over $431, I can confidently say that the words of Michael Saylor, “Never give up,” resonate deeply with me.

In the early market trade, MicroStrategy’s shares have risen by over 6%, likely due to an increase in the value of cryptocurrencies, particularly Bitcoin, which reached a record peak.

The cost of MicroStrategy’s shares is climbing too, given the market’s response to the announcement that the major BTC stockholder will be added to the Nasdaq-100 index.

Even though the MSTR stock currently trades below its previous high of around $543, it has risen above $430 due to a pre-market surge on Dec. 16. As the company is about to be listed in the Nasdaq 100, the outlook for this Bitcoin-centric business intelligence and software firm is extremely optimistic.

Last Friday’s announcement revealed that MicroStrategy (MSTR) will be added to the Nasdaq 100 index starting December 23rd. The excitement and buying interest associated with being listed in an index, typically as investors seek to acquire the newly added component, may lead to additional price increases for MicroStrategy shares.

In the past year, MicroStrategy (MSTR) has seen remarkable growth, fueled by the rising Bitcoin (BTC), which propels positive momentum for crypto stocks. Known for encouraging the use of Bitcoin as a corporate investment for publicly-traded companies, MicroStrategy began investing in the leading cryptocurrency on its balance sheet back in 2020.

Ever since then, as a crypto investor, I’ve been astounded by the aggressive moves of Michael Saylor’s company. They’ve scooped up an impressive 423,650 Bitcoins at around $25.6 billion. That means each Bitcoin they acquired cost an average of $60,324. With the Bitcoin price hovering above $100k, their total holdings are valued at a hefty $42.3 billion.

Significantly, the leading cryptocurrency surpassed a fresh all-time high of more than $106,000 following its recent upward surge. Optimistic remarks about crypto from then-President-elect Donald Trump contributed to the market’s positive sentiment.

The MicroStrategy stock has on its part soared by more than 350 year-to-date. Over the past four years, MSTR has outperformed the S&P 500, gold, real estate and bonds. Its annualized performance stood at 124%, compared to 64% for Bitcoin, 15% for the S&P 500 and 10% for real estate.

Over the recent span, by December 13th to be precise, I’ve noticed that traditional safe haven assets like gold have only yielded an annualized return of a modest 7%. Conversely, bonds are showing a disappointing -5% return. Michael Saylor, the visionary Founder and Chairman who views Bitcoin as digital property, has highlighted this performance on his platform.

Exactly three weeks from a record-breaking low of just $0.42 on July 3, 2002, the MSTR stock has now reached an astounding high of $421.88 in its latest closing price. Perseverance always pays off!

— Michael Saylor⚡️ (@saylor) November 23, 2024

MicroStrategy’s Bitcoin approach is capturing the attention of financial analysts, who see its potential for continued market dominance over competitors. The decision to include MSTR in the Nasdaq-100 index has analysts speculating that it may soon be added to the S&P 500.

MSTR closed at $408 on Dec. 13. The hot stock hovered above $431 at the time of writing.

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2024-12-16 15:07