MicroStrategy Joins Nasdaq 100 After 500% Stock Rally

MicroStrategy Joins Nasdaq 100 After 500% Stock Rally

In Summary

  • MicroStrategy will join the Nasdaq 100 on Dec. 23 after a 500% stock rally this year
  • Inclusion is expected to prompt $2 billion in ETF stock purchases
  • The company holds 423,650 Bitcoin, worth $43 billion
  • Analysts expect a bid for S&P 500 inclusion in 2025, despite profitability concerns


Catenaa, Monday, December 16, 2024- MicroStrategy, the largest corporate holder of Bitcoin, will officially join the Nasdaq 100 index on December 23 following a nearly 500% surge in its stock price this year.1

The company will be included alongside Palantir and Axon Enterprise, replacing Moderna, Illumina, and Super Micro Computer. 

The move comes as part of Nasdaq’s annual rebalancing and positions MicroStrategy for significant inflows from exchange-traded funds, including the popular QQQ ETF.

Analysts predict ETFs will purchase over $2 billion worth of MicroStrategy shares after the inclusion. 

Michael Saylor, MicroStrategy’s executive chairman, has leveraged a “flywheel effect” to accumulate 423,650 Bitcoin, valued at approximately $43 billion.

The company’s current market capitalization of $98 billion reflects growing investor confidence in its Bitcoin-focused strategy, despite diminishing focus on its legacy software business. 

MicroStrategy’s sights are now set on joining the S&P 500 in 2025, though analysts warn its lack of profitability in software operations may pose challenges.

This development underscores the growing integration of cryptocurrency into traditional financial markets, with Bitcoin adoption continuing to drive institutional interest. 

Sources
  1. theblock: https://www.theblock.co/post/330903/microstrategy-to-join-nasdaq-100-qqq-etf-following-500-rally-this-year[↩]
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