Shares of Microstrategy (MSTR -0.04%) jumped on Monday, with the stock up about 5% as of 2 p.m. ET. And for several reasons. On Friday (after market close) Nasdaq announced that the stock would be included in the Nasdaq-100 Index – a list of approximately 100 non-financial companies. This is an incredible development for the company, considering that just five years ago its market capitalization was less than $1 billion, which was far too small for the Nasdaq-100.

MicroStrategy stock’s incredible rise is due to its aggressive investments in the world’s largest cryptocurrency: Bitcoin. According to a Dec. 16 financial report, the company purchased 15,350 bitcoins in the past week alone, bringing its total holdings to approximately 439,000 bitcoins.

That’s a big deal considering Bitcoin’s price has risen about 1,500% in the last five years. In fact, it even hit a new all-time high today at over $107,000 per Bitcoin. And as the price of Bitcoin has risen, MicroStrategy’s holdings have also increased in value, making the company one of the most valuable companies in the world and securing a spot in the Nasdaq-100.

MicroStrategy’s success inspired other companies to use the same playbook. Mara Holdings (MARA 8.05%) And Riot Platforms (UPRISING 8.01%) are two of the largest Bitcoin mining companies in the world. But both are now also aggressively buying Bitcoin, following in MicroStrategy’s footsteps. With Bitcoin rising today, both Mara and Riot were up around 10% as of 2 p.m. ET.

At the moment it just keeps going up

As of December 9th, Mara held 40,435 Bitcoins. More than 20,000 of these were mined as part of the company’s normal operations. But in recent months, the company has been buying even more Bitcoin on the open market.

The same goes for Riot too. In a press release today, management said it completed a previously announced debt offering, raising $579 million net of expenses. The company plans to use all of the money to purchase Bitcoin, which would allow it to purchase almost 5,500 Bitcoins at the current price. These will be added to the 16,728 Bitcoins it already owned as of December 13th.

The relationship between the price of Bitcoin and the share prices of MicroStrategy, Mara and Riot is increasingly developing into a symbiosis. As Bitcoin rises, the value of these three stocks also rises due to the amount of Bitcoin each company holds. But the more valuable these companies become, the more money they can get to buy more Bitcoins, further driving up the price.

Will Bitcoin continue its historic rise?

As long as Bitcoin continues to rise, shares of MicroStrategy, Mara and Riot should also continue to perform well. And historically speaking, there is reason to believe that Bitcoin is in for a good time in 2025.

I don’t want to say that Bitcoin is without risk. In the past, things like failed cryptocurrency exchanges, excessive leverage, and fears of regulation have caused Bitcoin’s price to decline. Things appear to be warming up on the regulatory front, but these risks are still an ongoing concern.

However, Bitcoin has historically performed very well in the year before its halving, the year of its halving, and the year after. Without explaining the details of it all, the halving event disrupts the stability of supply and demand in the market, which normally drives the price higher.

This year was a halving year for Bitcoin. Just in time, the price increased in 2023 and 2024. And if history repeats itself again, the price could continue to increase in 2025 too.

To reiterate, a healthy dose of skepticism is always a good thing when investing. But if Bitcoin rises in 2025, that should generally be good for MicroStrategy, Mara and Riot.