Emily Walker
MicroStrategy is at a pivotal moment, as it prepares to join the Nasdaq 100 index. An official announcement is expected on December 13, with the change set to take effect on December 23.
MicroStrategy’s Addition to the Nasdaq 100
The Nasdaq 100 Index, which represents the largest non-financial firms on the Nasdaq exchange, is undergoing rebalancing that will include MicroStrategy in its listings.
Analysts predict that this integration could lead to approximately $2.1 billion in net inflows into ETFs as funds adjust their portfolios to acquire shares of MicroStrategy. This figure represents about 20% of MicroStrategy’s average daily trading volume, marking a significant financial event for the company and its investors.
Exciting news: MicroStrategy ($MSTR) will be part of the Nasdaq-100!
This elite index features the largest non-financial firms on NASDAQ, now including a leader in #Bitcoin.
Read more about its significance
— OSL (@osldotcom) December 11, 2024
Through its innovative strategy of accumulating Bitcoin, at one time holding about 2% of the global supply, MicroStrategy has seen a remarkable rise in its market share.
By early December, the firm had acquired over 423,650 Bitcoins, valued at approximately $41 billion in total.
This proactive approach has heightened market visibility, drawing in passive investors interested in Bitcoin through means like ETFs that track the Nasdaq 100 index, where shares of MicroStrategy provide indirect access to cryptocurrency.
Michael Saylor’s Influence
Michael Saylor, the co-founder and chairman of MicroStrategy, is at the forefront of this initiative. His advocacy for Bitcoin has positioned the company as a leader in the cryptocurrency investment space among traditional businesses.
$MSTR is expected to be included in $QQQ on December 23 (with an announcement on December 13). Moderna may be removed (symbolically). Below are the expected changes according to @JSeyff. A 0.47% weight is predicted (40th largest holding). There’s $550 billion in ETFs following this index. An S&P 500 addition might come next year. pic.twitter.com/rmTavtvWQL
— Eric Balchunas (@EricBalchunas) December 10, 2024
Saylor recently tried to persuade Microsoft to adopt Bitcoin as a reserve asset, but the board rejected the proposal. Nonetheless, Saylor’s vision continues to inspire other companies, like Tesla and Metaplanet, to explore cryptocurrency investments.
Bloomberg’s Eric Balchunas has verified that MicroStrategy is likely to be added to the Nasdaq 100 index, alongside Palantir Technologies.
MicroStrategy’s upcoming entry into the Nasdaq highlights its innovation and agility in the market. Analysts predict that if its stock continues to perform well, MicroStrategy could join the S&P 500 by 2026, further solidifying its status in traditional finance.
Impact On Investors
MicroStrategy’s application to join the Nasdaq 100 showcases a broader shift towards the acceptance of bitcoin in mainstream finance. With significant capital flows expected and an increasing recognition of Bitcoin’s potential, this development could signal a transformative moment for MicroStrategy and the future of digital assets within traditional investment frameworks.
Image credit: Corporate Finance Institute, chart from TradingView