MicroStrategy Sees Surge in Trading Volume

MicroStrategy, known as a business intelligence software firm and bitcoin trading proxy, has experienced a significant increase in stock trading (MSTR) following its largest bitcoin purchase to date.

On Wednesday, MSTR’s trading volumes in dollar terms surpassed those of major assets like SPY, one of the largest exchange-traded funds on the market.

Eric Balchunas, senior ETF analyst for Bloomberg Intelligence, commented on X, “Wow $MSTR is the most traded stock in America today… It’s been years since a stock has traded more than $TSLA and $NVDA (it may have actually been $GME last to do it). It’s also about double $SPY! Wild times…” Balchunas referenced dollar volume data from Bloomberg Terminal. While in terms of shares traded, MSTR ranks seventh according to Bloomberg and second according to Factset.

Recently, MicroStrategy announced it purchased approximately $4.6 billion worth of bitcoin on Monday, marking its largest transaction series to date. Founded by Michael Saylor in 1989, the company has been following a strategy of funding its bitcoin purchases by selling debt and using cash from its traditional business.

On Monday, MicroStrategy expanded a previously announced convertible senior note offering to $2.6 billion, primarily intended for further bitcoin acquisitions. These notes, available only to institutional investors, bear 0% interest and can be converted into cash or equity.

Currently, MicroStrategy holds about $29.7 billion in bitcoin, acquired at a total cost of around $16.5 billion, including fees and expenses. This includes the recent buying spree, acquiring another 51,780 BTC.

As of Wednesday, MSTR shares rose over 43% to $473, seeing nearly a 910% price increase since January, while the S&P 500 has gained approximately 33%, according to Factset. Bitcoin’s year-to-date gain is nearly 110%.

Additionally, the T-REX 2X Long MSTR Daily Target ETF (ticker: MSTU), a leveraged play on MicroStrategy stock, has surged nearly 50% and is currently the eighth-most traded stock, per Balchunas.