- MicroStrategy’s Bitcoin acquisition fueled a stock surge, highlighting its role as a major BTC holder.
- The company’s Nasdaq 100 inclusion boosted visibility, but risks linked to Bitcoin remained.
MicroStrategy stock surged nearly 5% on Monday, following the company’s announcement of a significant Bitcoin [BTC] acquisition and its inclusion in the Nasdaq 100.
The software firm-turned-Bitcoin whale bought an additional 15,350 BTC for $1.5 billion, bringing its total to around 440,000 BTC.
This move sparked investor optimism, highlighting MicroStrategy’s commitment to Bitcoin and its impact on the company’s stock and the broader market.
MicroStrategy’s Bitcoin strategy
MicroStrategy’s aggressive Bitcoin accumulation continues to solidify its role as the largest corporate holder of BTC. With the latest purchase, MSTR’s position has largely expanded in the past 40 days.
Analysts at Bernstein estimate that 40% of this total has been acquired within this period, marking an acceleration of purchases coinciding with renewed bullish sentiment around Bitcoin.
Notably, MicroStrategy has also been allocated a 0.47% weight in the Nasdaq 100 index.
Source: Bernstein
This buying spree is driven by optimism around Trump’s pro-crypto policies, like Paul Atkins’ SEC appointment.
Since adopting Bitcoin in 2020, MicroStrategy has funded acquisitions through debt, equity, and cash flow, showing its strong commitment to Bitcoin despite its volatility.
Nasdaq 100 inclusion and implications
MicroStrategy’s Nasdaq 100 inclusion, effective the 23rd of December, alongside Palantir and Axon, showed growing market confidence in its Bitcoin strategy.
The announcement lifted shares 5% before closing flat, with year-to-date gains over 580%. This inclusion boosted the stock’s visibility and could attract institutional inflows, increasing liquidity and performance.
However, it also reinforced MicroStrategy’s role as a Bitcoin proxy, linking its stock to BTC price trends.
With Bitcoin rising above $106,000 amid Trump’s crypto-friendly rhetoric, sentiment remains positive, though the stock’s volatility concerns traditional investors.
MicroStrategy stock: Criticism and skeptics
Despite MicroStrategy’s Bitcoin-driven surge, critics argue that its strategy carries outsized risk. Short seller Citron Research recently took a bearish position, claiming that the stock has,
“Completely detached from BTC fundamentals.”
Such skepticism stems from MicroStrategy’s heavy reliance on debt and the speculative nature of its Bitcoin holdings, which amplify downside risks during BTC market corrections.
“Now, with Bitcoin investing easier than ever (ETFs, $COIN, $HOOD), $MSTR’s volume has completely detached from BTC fundamentals. While Citron remains bullish on Bitcoin, we’ve hedged with a short $MSTR position. Much respect to @saylor, but even he must know $MSTR is overheated.”
Skeptics highlight concentration risk: while BTC’s rally boosts the stock, its fate remains tied to Bitcoin’s price volatility.
As MicroStrategy doubles down on BTC, questions remain about the sustainability of this high-risk strategy in uncertain conditions.
