Why MicroStrategy shares surged after Tesla's $1.5 billion bitcoin buy - CNBC

An illustration of bitcoin on Euro banknotes.

Nicolas Economou | NurPhoto via Getty Images

MicroStrategy's stock is up more than 700% since August, when the Virginia-based enterprise software company became an early adopter of buying bitcoin for its corporate treasury.

Michael Saylor, its chairman and CEO, is an outspoken evangelist for bitcoin and encouraged other companies to follow MicroStrategy's lead — including Tesla CEO Elon Musk in a Twitter conversation.

On Monday, a little more than a month since Saylor tweeted at Musk, Tesla revealed in a regulatory filing it had bought $1.5 billion worth of bitcoin and plans to accept the digital coin as payment in the future. The price of bitcoin — and MicroStrategy's stock — soared following the news.

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2021-02-09 13:41:00Z
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