MicroStrategy's Bitcoin-Inspired Market Surge

Retail investors funneled nearly $11 million into MicroStrategy on Monday after it joined the Nasdaq-100 index. The company's stock has soared by 550% in 2024, driven by its significant investment in bitcoin, which surpassed $100,000. MicroStrategy's role extends beyond crypto, selling business analytics software.

Retail investors surged nearly $11 million into MicroStrategy's shares on Monday, a considerable increase from the usual daily inflows, following the company's entry into the Nasdaq-100 index.

Data from Vanda Research reveals MicroStrategy's growing appeal among individual investors, as the firm's stock has skyrocketed by nearly 550% this year, vastly outperforming Nvidia. Promoted as a tool bypassing government intermediaries, bitcoin champions like co-founder Michael Saylor enjoy a fierce following.

MicroStrategy's stock rise parallels bitcoin's historic climb past $100,000, fueled by President-elect Donald Trump's pro-crypto stance. Despite primarily purchasing bitcoin, MicroStrategy also sells business analytics software, a division experiencing a revenue decrease last quarter. Short sellers have retreated, easing from 20.7% to 12.98%, which usually boosts stock prices.

(With inputs from agencies.)