MicroStrategy Joins Nasdaq-100 Index

Nasdaq announced that Michael Saylor’s company, MicroStrategy (MSTR), will be added to the Nasdaq-100 starting December 23.

According to the press release, Palantir Technologies Inc. (PLTR) and Axon Enterprise, Inc. (AXON) will also be included in the index, while Illumina (ILMN), Super Micro Computer (SMCI), and Moderna (MRNA) will be removed.

“Adding stocks to the index means that ETFs, including the popular Invesco QQQ Trust with assets of $325 billion, will automatically start purchasing them,” reports CNBC.

The Nasdaq-100 index consists of the 100 largest non-financial companies by market capitalization, whose securities are traded on the Nasdaq exchange.

Community Reaction

The crypto community welcomed the news of MicroStrategy’s inclusion in the Nasdaq-100 with optimism.

Now that MSTR is getting added to the Nasdaq, every large pension fund, sovereign wealth fund, and individual retirement account in the world is going to have Bitcoin exposure.

— Will (@WClementeIII) December 14, 2024

“Now that MSTR is added to Nasdaq, every large pension fund, sovereign wealth fund, and individual retirement account will have access to Bitcoin,” noted Reflexivity Research co-founder Will Clemente.

Jeff Park, head of alpha strategies at Bitwise Invest, wrote:

“The deal of the decade is just beginning. Buckle up.”

Felix Hartmann, founder of Hartmann Capital, stated:

“These news won’t be priced in until public markets open.”

According to the expert, due to increased competition, many asset managers will also begin investing directly in Bitcoin or MicroStrategy shares.

CNBC analysts suggested that the growth of Saylor’s company shares might continue. They observed that the securities have risen about sixfold this year, while Bitcoin has increased by a “modest” 140%.

Bernstein analyst Gautam Chhugani speculated that “the market will target [MSTR] for inclusion in the S&P 500 in 2025.”

Founded in 1989, MicroStrategy initially specialized in enterprise-level analytics software.

In August 2020, the IT company, with a market capitalization of about $1.3 billion, unexpectedly announced the acquisition of approximately 21,454 BTC worth about $250 million. It became the first public firm, whose shares are traded on the Nasdaq, to invest capital in Bitcoin.

Now, MicroStrategy’s market capitalization is approaching $97 billion. The firm holds Bitcoins worth over $43 billion on its balance sheet.

Earlier, Bloomberg analyst James Seyffart estimated that following its inclusion in the Nasdaq-100, the volume of the company’s stock purchases through ETFs will amount to at least $2.1 billion.