MicroStrategy (NASDAQ:MSTR) is making waves as its stock soars an eye-popping 540% year-to-date, largely thanks to its relentless Bitcoin (BTC-USD) buying spree. The company recently added 21,550 bitcoins to its wallet, bringing its total to a jaw-dropping 423,650 coinsmore than 2% of all Bitcoin in circulation. And with Bitcoin flirting with the $100,000 mark, analysts are watching closely. While some see this as a psychological ceiling prompting long-term holders to cash out, others believe the hype around institutional demand and a pro-crypto regulatory stance could push prices higher.
But there’s more to this story than just Bitcoin. MicroStrategy is angling for a coveted spot in the Nasdaq 100 (^NDX), a move that could pump $2.1 billion into its stock as ETFs like QQQ (NASDAQ:QQQ) load up. Analysts are buzzing, with some raising their price targets as high as $650. Yet, the real game-changer might come in 2025 when new accounting rules allow MicroStrategy to recognize unrealized Bitcoin gains, potentially making its case for the S&P 500 (SPY) even stronger. For now, the company’s software business, while still profitable, is playing second fiddle to its role as a Bitcoin bellwether.
Of course, the ride hasn’t been all smooth. MSTR’s sky-high volatility and a 7% dip in recent weeks are reminders that this is not a stock for the faint-hearted. But with a $2.13 billion war chest from a recent share sale and growing attention from institutional players, MicroStrategy isn’t just betting on Bitcoinit’s doubling down. Whether it’s the Nasdaq 100 or the broader S&P 500, investors should keep this stock on their radar as it navigates the crossroads of crypto and traditional finance.
This article first appeared on GuruFocus.
