Microstrategy surges 6.5% in pre-market trading

MicroStrategy shares rose more than 6% in premarket trading as cryptocurrencies saw gains as Bitcoin rose to an all-time high.

The price of MicroStrategy shares is also rising as the market reacts to the news that the leading institutional owner of Bitcoin (BTC) will be included in the Nasdaq-100 index.

While MSTR shares are trading below their recent peak above $543, a premarket rally on Dec. 16 pushed MicroStrategy shares above $430. Ahead of its upcoming listing as part of the Nasdaq 100, sentiment is very bullish on the BTC-focused business intelligence and software company.

In the announcement made last Friday, Nasdaq announced that the inclusion of MSTR in the 100 index will go into effect on December 23. The buying pressure that comes with a listing can often lead to further gains in MicroStrategy’s price as funds acquire the new component.

MSTR has boomed last year as rising BTC helped catalyze upward momentum for crypto stocks. MicroStrategy, which has inspired and continues to inspire the adoption of Bitcoin as a corporate treasure for publicly traded companies, first added the flagship cryptocurrency to its balance sheet in 2020.

Since then, the Michael Saylor-led company has purchased a staggering 423,650 BTC for approximately $25.6 billion. The average purchase price of total assets is $60,324 per bitcoin, making it worth approximately $42.3 billion when the Bitcoin price was over $100,000.

Notably, the benchmark cryptocurrency reached a new ATH of over $106k following the recent rally. President-elect Donald Trump’s pro-crypto comments helped bulls rally.

MicroStrategy shares are up more than 350 percent year to date. Over the past four years, MSTR has outperformed the S&P 500, gold, real estate and bonds. Its annual performance was 124%; 64% for Bitcoin, 15% for the S&P 500, and 10% for real estate.

During this period and as of December 13, the annual return of safe haven gold was only 7%. Meanwhile, bonds remained at -5%. Founder and Chairman Michael Saylor, who sees Bitcoin as a ‘digital asset’, shared this performance in X.

On July 3, 2002, $MSTR The stock fell to an all-time low of $0.42. It closed yesterday at $421.88.

Never. Never. Never give up.

— Michael Saylor⚡️ (@saylor) 23 November 2024

MicroStrategy’s Bitcoin strategy has analysts examining its potential to outperform its market peers. The move for MSTR to form the Nasdaq-100 index has led analysts to indicate that it could head to the S&P 500 next.

MSTR closed at $408 on December 13. At the time of this writing, the hot stock was hovering above $431.