MicroStrategy Surges on Trump's Crypto Policy $5.2B Volume Ranks 11th Largest

On August 7, 2025, MicroStrategy (MSTR) surged 4.85% with a trading volume of $5.21 billion, a 89.65% increase from the prior day, ranking 11th in market liquidity. The move followed U.S. President Trump’s executive order permitting 401(k) retirement plans to allocate funds to cryptocurrencies, gold, and private equity, unlocking a $12 trillion investment market. This policy shift could inject billions into crypto markets, directly benefiting MicroStrategy, which holds 628,000 Bitcoins valued at $73 billion. The company’s stock, tied to Bitcoin’s performance, faces amplified exposure to crypto volatility but may benefit from increased institutional adoption of digital assets.

MicroStrategy’s aggressive Bitcoin strategy, funded through convertible notes and equity, has transformed it into a leveraged proxy for the cryptocurrency. Its $111 billion market cap reflects Bitcoin-driven growth, though the firm’s reliance on crypto prices leaves it vulnerable to market swings. While the executive order could accelerate Bitcoin’s mainstream adoption, regulatory delays and fiduciary hesitancy may temper immediate gains. Analysts caution that even modest 1-3% allocations from retirement plans could inject $90 billion to $270 billion into crypto, bolstering MSTR’s valuation but requiring investors to weigh risks linked to its leveraged structure.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets. The backtest highlights the effectiveness of high-volume trading in capturing momentum, reflecting how liquidity-driven strategies can capitalize on market uncertainty and macroeconomic shifts.