• MicroStrategy added 5,200 BTC worth $561M to its holdings, coinciding with the Nasdaq-100 debut, solidifying its lead in corporate Bitcoin adoption.
• Analysts see MicroStrategy’s Nasdaq-100 inclusion as a catalyst for higher trading volume, despite Bitcoin’s dip below $100K impacting shares.

MicroStrategy announced on Monday the acquisition of $561 million worth of Bitcoin, adding 5,200 BTC to its holdings. The purchase, funded through the sale of 1.3 million shares, was detailed in a filing with the U.S. Securities and Exchange Commission. This brings the company’s total Bitcoin holdings to 444,262 BTC, valued at approximately $42 billion. It further solidifies its status as the largest corporate holder of the cryptocurrency.

The announcement coincided with a significant milestone for the company. MicroStrategy’s stock officially debuted on the Nasdaq-100 index. It joined an elite group of non-financial companies, including tech giants like Apple and Nvidia. Trading began at $400.07 on Monday and climbed to $411.00 in after-hours trading. However, the stock later faced pressure, closing down 6% at $342. This marked a 17% decline over the past week as Bitcoin’s price dipped below $100,000.

Bitcoin proponents widely praised the Nasdaq-100 inclusion, with analysts highlighting its potential impact on trading volume and price. Bloomberg ETF Analyst James Seyffart estimated the inclusion could drive net purchases of at least $2.1 billion in MicroStrategy shares by ETFs. Similarly, Bitwise Senior Investment Strategist Juan Leon projected a 20% to 40% increase in trading volume. He suggested that days with positive flows could result in significant price surges.

MicroStrategy’s latest purchase marked the seventh consecutive Monday the company has disclosed Bitcoin acquisitions. According to Saylor Tracker, the firm has added 192,000 BTC since November 11. The average cost for these purchases was $106,600 per Bitcoin. Founder and executive chairman Michael Saylor reaffirmed his bullish stance on Bitcoin. He likened it to Manhattan real estate, stating the company would “keep buying the top forever.”

However, analysts have raised concerns about the risks associated with MicroStrategy’s strategy. The company has leveraged convertible notes to finance its Bitcoin purchases. This has led to a substantial premium on its stock relative to its Bitcoin holdings. As Bitcoin’s price has slid from its record high of $108,000 to $93,700, MicroStrategy’s valuation has come under scrutiny.

Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by Harshajit Sarmah.