MicroStrategy (NASDAQ: MSTR) shares surged nearly 5% on Monday after news broke that the company will join the prestigious Nasdaq-100 index. This milestone comes as MicroStrategy continues to position itself as the premier institutional Bitcoin investor, growing its cryptocurrency holdings significantly over the past week.
The company’s stock climb mirrors Bitcoin’s explosive rally, which also hit a record high above $107,000 on the same day. Meanwhile, other Bitcoin-focused stocks like Marathon Digital (NASDAQ: MARA) and Riot Platforms (NASDAQ: RIOT) posted significant gains as well, riding the cryptocurrency’s bullish momentum.
Nasdaq-100 Welcomes MicroStrategy After Stunning Growth
It’s hard to overstate what the Nasdaq-100 inclusion means for MicroStrategy. Just five years ago, the company’s market capitalization was under $1 billion — far too small for such recognition. Now, with a market cap exceeding $92 billion, the company is rubbing shoulders with some of the most influential non-financial firms in the world.
MicroStrategy’s pivot toward Bitcoin has made all the difference. The company, originally an enterprise software business, started investing heavily in Bitcoin in 2020. It has since evolved into what many call a “Bitcoin holding company.”
In a recent financial filing on Dec. 16, MicroStrategy revealed that it purchased 15,350 Bitcoins in the past week alone, bringing its total Bitcoin holdings to approximately 439,000. That’s no small feat considering Bitcoin’s meteoric price rise of 1,500% over the past five years.
With Bitcoin hitting new highs, MicroStrategy’s holdings have skyrocketed in value, propelling it into the Nasdaq-100.
Bitcoin Mining Companies Follow MicroStrategy’s Playbook
MicroStrategy’s success hasn’t gone unnoticed. Other companies, particularly Bitcoin miners like Marathon Digital and Riot Platforms, are now aggressively buying Bitcoin in addition to their regular mining operations.
Marathon, for instance, held 40,435 Bitcoins as of Dec. 9. Of these, over 20,000 were mined through its business operations, but the company has been ramping up its Bitcoin purchases on the open market.
Riot Platforms is following a similar strategy. On Monday, Riot confirmed it had successfully raised $579 million through a debt offering. Management plans to spend this capital on Bitcoin purchases — enough to buy nearly 5,500 Bitcoins at today’s price. This adds to the 16,728 Bitcoins it held as of Dec. 13.
The symbiotic relationship between these companies and Bitcoin’s price cannot be ignored. As Bitcoin rises, so does the value of their holdings. In turn, their improved market value allows them to raise more capital, which they use to buy even more Bitcoin.
Bitcoin Holdings Snapshot
| Company | Total Bitcoins Held | Recent Purchases |
|---|---|---|
| MicroStrategy | 439,000 | 15,350 |
| Marathon Digital | 40,435 | Ongoing |
| Riot Platforms | 16,728 | 5,500 (Planned) |
The numbers underscore how these companies are doubling down on Bitcoin exposure, further linking their fortunes to the cryptocurrency’s performance.
Bitcoin’s Halving Event Sets the Stage for More Gains
The recent run-up in Bitcoin prices may be part of a larger trend tied to Bitcoin’s “halving event” — a scheduled reduction in the reward for mining Bitcoin, which occurs roughly every four years.
Historically, Bitcoin’s price tends to climb in the year leading up to a halving, during the halving year, and in the year that follows. This year marked another halving, and the results have been consistent with previous cycles. Bitcoin prices surged in 2023 and 2024, and if history is any guide, the rally may extend well into 2025.
But while the long-term trends are encouraging for Bitcoin bulls, the market still carries significant risks.
Cryptocurrency remains vulnerable to unexpected shocks, such as exchange failures, liquidity issues, or regulatory crackdowns. Though regulatory sentiment has improved recently, uncertainty remains a factor.
For now, though, the stars seem aligned for Bitcoin. As long as the cryptocurrency’s price keeps climbing, MicroStrategy, Marathon, and Riot Platforms are poised to benefit.
What’s Next for MicroStrategy and Bitcoin-Focused Stocks?
The momentum is hard to ignore. With Bitcoin breaking records and MicroStrategy gaining the spotlight through its Nasdaq-100 inclusion, confidence in the company’s strategy appears higher than ever.
MicroStrategy’s stock has surged nearly 1,000% since it started buying Bitcoin in 2020. For Marathon and Riot, the potential for similar growth exists as they deepen their Bitcoin exposure.
Investors, however, would do well to stay cautious. While the Bitcoin boom has minted substantial gains, its volatility is legendary. MicroStrategy’s heavy reliance on Bitcoin also means its stock is essentially tethered to the cryptocurrency’s swings.
Still, for now, Bitcoin’s upward trajectory is fueling a ripple effect across the market — and MicroStrategy remains firmly at the center of it all.
