MicroStrategy (MSTR), the largest corporate holder of Bitcoin, will join the Nasdaq-100 Index on December 23, a move that's expected to significantly boost its stock. This inclusion follows a sixfold surge in its stock price this year, fueled by its aggressive Bitcoin investment strategy. The company's shares have climbed as Bitcoin's price has also increased.
This addition means that ETFs that track the index, such as the Invesco QQQ Trust, will automatically purchase MicroStrategy stock. Analysts predict this could lead to an inflow of approximately $2.1 billion into MSTR, potentially driving its price even higher. The Nasdaq-100 Index includes 100 of the largest non-financial companies listed on the Nasdaq, such as Apple, Nvidia, and Amazon.
MicroStrategy's shift towards Bitcoin began in 2020, and it now holds approximately 423,650 Bitcoins, acquired for around $25.6 billion. The company views Bitcoin as a core reserve asset and an inflation hedge. Bitcoin recently broke the $100,000 mark, further solidifying MicroStrategy's market position.
The correlation between MSTR and Bitcoin has been remarkably strong, with MicroStrategy’s stock outperforming Bitcoin this year. Some analysts believe that this inclusion in the Nasdaq-100 could pave the way for MicroStrategy's inclusion in the S&P 500 by 2025. This move also increases the Nasdaq-100’s exposure to Bitcoin, allowing millions of investors to indirectly participate in the crypto market.
While the inclusion is a significant win, some experts caution that if MicroStrategy is reclassified as a financial firm due to its Bitcoin holdings, it may no longer qualify for the Nasdaq-100. Despite this, the company's Bitcoin-focused strategy has inspired other companies to explore similar approaches. This news is also boosting Bitcoin's price, which is currently trading around $102,000. Explore more about the future of crypto investments.
Key Takeaways:
- MicroStrategy will join the Nasdaq-100 Index on December 23.
- ETFs tracking the index are expected to inject $2.1 billion into MSTR stock.
- MicroStrategy is the largest corporate holder of Bitcoin.
- The company's stock has surged due to its Bitcoin investments.
- Inclusion may lead to S&P 500 consideration in 2025.