Dec 17 (Reuters) - Retail investors poured nearly $11

million into MicroStrategy's ( MSTR ) shares on Monday, almost

three times their average daily inflows this year, after the

biggest corporate holder of bitcoin secured a spot in the

Nasdaq-100 index.

The data, compiled by Vanda Research on Tuesday, highlights

the bitcoin bull's growing popularity among individual investors

after its stock notched an eye-popping return of nearly 550%,

outpacing Wall Street favorite Nvidia's ( NVDA ) roughly 160%

surge so far in 2024.

Promoted as a financial tool free of government

intermediaries, bitcoin often earns its corporate champions a

devoted following. Michael Saylor, the co-founder and executive

chairman of MicroStrategy ( MSTR ), is known for posting his bullish

views on crypto to millions of his followers on X.

The company has also benefited from a massive rally in

bitcoin, which crossed the $100,000 milestone for the first time

earlier this month, thanks to the pro-crypto stance of U.S.

President-elect Donald Trump.

"Most people wouldn't have a clue what MicroStrategy ( MSTR ) does as

a day-to-day business, yet it has become the stock market's

poster child for playing the bitcoin price," said Dan

Coatsworth, investment analyst at AJ Bell.

While the company is primarily a bitcoin purchaser, it also

sells business analytics software. Revenue from its software

business fell 10% in the third quarter.

Short interest in the stock has retreated sharply - to

12.98% of the free float as of Dec. 16 compared with 20.7% at

the start of 2024, according to data from analytics firm Ortex.

Short sellers, which profit from betting against an asset,

often close out positions to limit losses when their trades turn

unfavorable. The activity can boost prices further.

The average daily retail inflow in MicroStrategy ( MSTR ) was $3.75

million so far this year, according to data from Vanda, which

excludes trading activity via private bankers or savings plans

like 401(k).