Why MicroStrategy shares rose after buying bitcoin from Tesla for $ 1.5 billion

An illustration of bitcoins in euro banknotes.

Nicolas Economou | NurPhoto via Getty Images

Shares of MicroStrategy have risen more than 700% since August, when the Virginia-based business software company became the first adopter to buy bitcoins for its corporate treasury.

Michael Saylor, its chairman and CEO, is a frank Bitcoin evangelist and encouraged other companies to follow the leadership of MicroStrategy, including Tesla CEO Elon Musk, in a Twitter conversation.

On Monday, just over a month after Saylor tweeted to Musk, Tesla revealed in a regulatory document that it had bought bitcoin worth $ 1.5 billion and plans to accept the digital currency as payment in the future. The price of bitcoin and MicroStrategy shares skyrocketed after the news.

.Source