MicroStrategy’s Bitcoin bet pays off – Flips Nvidia, Tesla in stock activity

• MicroStrategy overtakes tech giants to secure a spot among the top 100 companies.
• MSTR stock prices rise by double-digits.

MicroStrategy (MSTR) has solidified its position among the top 100 publicly listed companies in the U.S. market. Branding itself as the “world’s first Bitcoin development company,” the firm’s strategic investments are paying off in a big way.

AMBCrypto recently reported that MicroStrategy made a groundbreaking purchase of $4.6 billion worth of Bitcoin [BTC]. 

This purchase coincided with the announcement of $1.75 billion in convertible notes, a figure that swelled to $2.6 billion two days later due to overwhelming demand. 

The move has not only fueled a meteoric rise in the company’s stock but also propelled MicroStrategy’s market value beyond tech giants like Intel and Dell.

MicroStrategy dominates trading activity

Interestingly, the impact of MicroStrategy’s bold moves extended beyond just stock price appreciation. Eric Balchunas, senior ETF analyst at Bloomberg, highlighted on X (formerly Twitter) that MSTR became the most traded stock, eclipsing trading activity in Tesla and Nvidia.

He remarked,

“It’s been years since a stock has traded more than one of those two. Wild times.”

In dollar terms, MSTR’s trading volumes surpassed even SPY, one of the largest exchange-traded funds globally.

A record-breaking day for Bitcoin markets

The ripple effect of MicroStrategy’s actions also resonated in the broader Bitcoin market. Balchunas further noted that the Bitcoin Industrial Complex set a new record with $50 billion in volume. 

This figure was comparable to the average daily volume (ADV) of the entire UK stock market. The analyst revealed that MSTR alone accounted for $32 billion. 

Meanwhile, MicroStrategy-related ETFs such as MSTU and MSTX added another $6 billion, exceeding the combined volume of all spot Bitcoin ETFs.

MSTR to 400K BTC?

Meanwhile, the firm’s trajectory suggests that its Bitcoin reserves could continue climbing. Nate Geraci, President of The ETF Store, weighed in on the broader implications, emphasizing the scarcity of Bitcoin’s total supply.

He elaborated that nearly 20 million BTC have already been mined out of the capped 21 million supply. Furthermore, Geraci drew attention to estimates that 4-5 million BTC are permanently lost, while over 1 million BTC are held by Satoshi Nakamoto.

Lastly, another 1 million are owned by spot ETFs. Thus, with the finite nature of the asset and its distribution constraints, the exec noted,

“MSTR on its way to 400k btc. Not a price prediction, but there’s only so much to go around.”

MicroStrategy’s Bitcoin holdings soar

Worth noting that at press time MicroStrategy’s Bitcoin holdings stood at $31.51 billion, spanning 12 acquisitions in 2024 alone, according to Saylor Tracker.

As per Yahoo Finance, at the close of trading, MSTR shares were priced at $473.83, up 10.05%, while after-hours trading pushed the stock to $489.32, a further 3.27% increase.

Read Bitcoin’s [BTC] Price Prediction 2024-25

With its shares surging nearly 650% since January, MicroStrategy’s calculated Bitcoin bets appear to have catapulted the company into an elite league of market leaders, underscoring the growing influence of Bitcoin in traditional financial markets.