MicroStrategy, the software company turned Bitcoin advocate, achieved a remarkable milestone this week as its stock (MSTR) became the most traded asset in the U.S. in dollar terms, surpassing giants like Tesla and Nvidia. The surge follows the company’s announcement of its largest Bitcoin purchase to date and a significant upsizing of its convertible notes offering.

On Wednesday, MSTR led trading volumes by dollar value, outperforming Tesla (TSLA), Nvidia (NVDA), and SPY, one of the largest exchange-traded funds. Bloomberg’s Eric Balchunas highlighted the unprecedented achievement, noting it was the first time in years that a stock surpassed such major players in trading activity. MSTR shares soared 43% to a peak of $499, setting a new all-time high.

The surge coincided with Bitcoin hitting its own record price of $94,891, driven by heightened investor optimism following President-elect Donald Trump’s pro-Bitcoin stance. MicroStrategy's heavy involvement in Bitcoin investment further fueled the stock's demand.

MicroStrategy recently purchased 51,780 Bitcoin for $4.6 billion, its biggest acquisition yet. The company now holds 331,200 Bitcoin, worth approximately $31 billion at current prices, acquired at a cumulative cost of $16.5 billion. This move solidifies its position as the largest corporate holder of Bitcoin.

To fund the purchase, the company upsized its latest convertible senior note offering from $1.75 billion to $2.6 billion, citing overwhelming demand from institutional investors. The notes, bearing 0% interest, can be converted into cash or equity.

With the latest stock rally, MicroStrategy's market cap has soared to $109.3 billion, placing it among the top 100 public companies in the U.S. The stock has surged over 910% year-to-date, far outperforming the S&P 500’s 33% gain. Leveraged ETFs tied to MSTR, such as the T-REX 2X Long MSTR Daily Target ETF, have also seen substantial gains, further highlighting the market’s enthusiasm.

Michael Saylor, MicroStrategy’s executive chairman and the architect of its Bitcoin-focused strategy, has positioned the company as a “Bitcoin development firm.” Reflecting on the transformative impact of Bitcoin, Saylor stated in a recent interview, “When I found Bitcoin, I was in despair… Then you realize, no—the system is rigged against you.”

Saylor initiated the company’s Bitcoin strategy in 2020, arguing that Bitcoin was a superior store of value compared to cash. His bold approach has not only revitalized the company but also set a precedent for corporate treasury strategies.

MicroStrategy’s success underscores the growing acceptance of Bitcoin as a strategic asset among institutional investors. The company’s returns have outpaced all others on the S&P 500, cementing its reputation as a trailblazer in integrating Bitcoin into corporate finance.

The Block Article