Shares of cloud software developer MicroStrategy (MSTR) are popping off after the company increased its bitcoin (BTC-USD) holdings, buying another 12,000 bitcoin. The past few weeks have seen the cryptocurrency rally and rebound over and over again, reaching multiple record highs.

Yahoo Finance Live monitors MicroStrategy's stock action amid bitcoin's rally.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

JARED BLIKRE: Well, let's head on over to the Yahoo Finance Trending Ticker page as the trading day draws closer to the closing bell. MicroStrategy topping our watch list. Shares are surging after the company makes its second largest Bitcoin purchase. MicroStrategy is buying another 12,000 Bitcoin, bringing the company's total Bitcoin holdings to approximately 205,000 tokens.

The company's market cap is now an astounding $27.7 billion mostly due to its sizable Bitcoin holdings. Shares are up 150% year-to-date. Julie, wow. And I think people would be surprised that originally this was a software company first. Now, they're--

JULIE HYMAN: I mean, it still is a software company apparently.

JARED BLIKRE: They are sort of. Kind of. Kind of. But really, they have built up these Bitcoin holdings. And for now, it seems to be working out. But that could change a drop a dime if we see a pullback in crypto.

JULIE HYMAN: Well, it was that way when we saw the pullback before. But I mean, the fact that they own 205,000 Bitcoin now is just a pretty incredible number here. What's also interesting is that they just sold debt in order to fund the purchase of this newest Bitcoin. So that's why if things go pear shaped in the Bitcoin market, that could be even more troubling for them. But so far, so good, right? And there's a lot of predictions.

And we're going to talk to a couple of crypto investors in a little bit. We've seen some big predictions based on the halving, based on continued demand for Bitcoin ETFs. One interesting thing that stuck out to me, the latest Bitcoin buy that MicroStrategy did, the average price was at 68,477. So we're right around there now. But the average price for the total holding is 33,706. So in that sense--

JARED BLIKRE: So Michael Saylor just--

JULIE HYMAN: --they've been sitting pretty.

JARED BLIKRE: Of course, CEO Michael-- he's not--

JULIE HYMAN: He's the executive chairman now.

JARED BLIKRE: But it's still his ship, right?

JULIE HYMAN: Well, he's in charge of the crypto strategy for the company. And by the way, we're going to talk to him tomorrow--

JARED BLIKRE: I heard.

JULIE HYMAN: --on the show. So we'll talk to him about that Bitcoin strategy.