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MicroStrategy attracts $11 million from retail investors after Nasdaq-100 inclusion

Published 18/12/2024, 04:34 am
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Investing.com -- Retail investors invested nearly $11 million into MicroStrategy's shares on Monday, nearly tripling the average daily inflows for the year. This surge in investment came after the company, which holds the most bitcoin of any corporation, secured its place in the Nasdaq-100 index.

Data compiled by Vanda (NASDAQ:VNDA) Research on Tuesday showed the growing popularity of the bitcoin bull among individual investors. MicroStrategy's stock has seen a significant return of nearly 550%, surpassing the roughly 160% increase of Wall Street favorite Nvidia (NASDAQ:NVDA) in 2024.

Bitcoin, promoted as a financial tool free from government intermediaries, often earns its corporate advocates a dedicated following. MicroStrategy's co-founder and executive chairman, Michael Saylor, is known for sharing his positive outlook on crypto to millions of followers on X.

MicroStrategy has also benefited from a large rally in bitcoin, which exceeded the $100,000 mark for the first time earlier this month. This milestone was achieved in part due to the pro-crypto stance of U.S. President-elect Donald Trump.

"Most people wouldn't have a clue what MicroStrategy does as a day-to-day business, yet it has become the stock market's poster child for playing the bitcoin price," stated Dan Coatsworth, an investment analyst at AJ Bell.

While MicroStrategy's primary business is buying bitcoin, it also sells business analytics software. In the third quarter, revenue from its software business dropped by 10%.

Short interest in the stock has significantly decreased, going from 20.7% at the beginning of 2024 to 12.98% of the free float as of Dec. 16, as per data from analytics firm Ortex. Short sellers, who profit when an asset's price falls, often close out positions to limit losses when their trades become unfavorable, which can further drive up prices.

Vanda's data, which does not include trading activity through private bankers or savings plans like 401(k), shows that the average daily retail inflow into MicroStrategy was $3.75 million for the year so far.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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