MicroStrategy’s capitalization has crossed $100 billion

MicroStrategy shares became the most traded stock on the stock market in the U.S. today, surpassing securities of organizations such as Tesla and Nvidia in terms of transaction volume with $18.56 billion versus $17.32 billion and $11.91 billion, respectively. This development was an unexpected breakthrough for the company. Not only did MicroStrategy’s ($MSTR) trading volume outperform Tesla and Nvidia, but it also outperformed SPY, the largest exchange-traded fund tracking the performance of the S&P 500 Index, by twice as much. The last time the stock traded at this level was several years ago, during the GameStop (GME) surge of interest.

The reason for the increased interest in MicroStrategy was the news of an increase in the issuance of interest-free convertible bonds from $750 million to $2.6 billion. These securities will allow the organization to raise additional capital, which will be used to further purchase VTS as part of MicroStrategy’s core investment strategy. The

company’s capitalization temporarily surpassed $100 billion, which was a historic moment. An important driver of this growth remains the dependence of MicroStrategy shares on the bitcoin price. The growth of the cryptocurrency amid interest from institutional investors has increased attention to the company, which now holds the largest BTC portfolio among public organizations. However, this situation raises questions about possible risks. Investments in bitcoin make MicroStrategy’s shares extremely volatile. As the BTC rate rises, the company’s securities rise in value, but a drop in cryptocurrency quotes can cause a sharp decline. An additional factor was the fact that MicroStrategy remains one of the few organizations offering investors indirect access to Bitcoin through traditional stock markets.