MicroStrategy (MSTR) is set to join the Nasdaq 100 index on December 23, with an official announcement expected this week, according to Bloomberg Intelligence analyst Eric Balchunas. The move will position MicroStrategy among the top 100 largest stocks by market capitalization on the Nasdaq stock exchange.
What This Means for MicroStrategy and Investors
This inclusion will bring MicroStrategy into one of the most prestigious stock indices, exposing its shares to institutional capital flows worth hundreds of billions of dollars. Balchunas highlighted that MSTR will likely hold a 0.47% weight in the Nasdaq 100, making it the 40th-largest holding. Over $550 billion in exchange-traded funds (ETFs) track the index, including the popular Invesco QQQ Trust (QQQ), which manages approximately $322 billion in assets.
Balchunas noted, “$MSTR is likely to be added to $QQQ on December 23 (with the announcement on December 13),” while predicting that Moderna, a biotech company known for its COVID-19 vaccine development, will be removed from the index.
Looking ahead, Balchunas expects MicroStrategy to join the S&P 500—the world’s most widely followed stock index—by 2025.
MicroStrategy’s Bold Bitcoin Strategy
MicroStrategy made headlines in 2020 when it transitioned from a software company to a major Bitcoin investor under the leadership of co-founder Michael Saylor. Over the past three years, the company has spent around $25 billion acquiring Bitcoin as part of its corporate treasury strategy.
This aggressive approach has paid off significantly, with MicroStrategy’s Bitcoin holdings generating over $17 billion in unrealized profits, according to MSTR Tracker. The company now owns nearly 425,000 BTC, worth more than $42 billion.
Stock Performance
MicroStrategy’s stock has surged by an impressive 2,500% since 2020, significantly outperforming most large-cap companies, including tech giants, except Nvidia. Bitcoin’s rally, which saw it surpass $100,000 per coin in December, has further amplified the stock’s value.
Currently, MSTR trades at more than double the value of its Bitcoin treasury, reflecting investor confidence. Mark Palmer, an analyst at Benchmark Research, believes MicroStrategy’s stock could continue climbing as the company intensifies its Bitcoin acquisition efforts.
Key Takeaways
- Index Inclusion: MicroStrategy will join the Nasdaq 100 on December 23, with its addition to ETFs like QQQ potentially boosting stock demand.
- Institutional Exposure: The move could attract significant capital from funds tracking the index.
- Bitcoin Strategy: The company’s bold investment in Bitcoin has driven its meteoric rise, making it one of the standout performers in recent years.
MicroStrategy’s inclusion in the Nasdaq 100 marks a milestone for the company and signals growing institutional recognition of its unique Bitcoin-centric strategy.
