MicroStrategy Joins NASDAQ 100 as Bitcoin Price Soars

As a seasoned crypto investor with a knack for spotting trends and understanding the intricacies of the market, I must admit that the recent developments surrounding MicroStrategy (MSTR.O) have piqued my interest. The company’s strategic shift towards Bitcoin in 2020 and its subsequent inclusion in the Nasdaq-100 Index is a testament to the growing acceptance of digital assets in mainstream finance.

Starting December 23rd, MicroStrategy (MSTR.O) will become part of the Nasdaq-100 Index. This move comes after a sixfold increase in its stock this year, primarily due to its bold Bitcoin investment strategy. Being added to the index is predicted to positively impact the company’s shares, as Exchange Traded Funds (ETFs) linked to the index will start purchasing MicroStrategy shares.

Investors had already expected the announcement of the addition, made over the weekend, as it followed the index’s periodic rebalancing.

In 2020, I, as a crypto investor, observed that my company redefined its approach due to hurdles in our software sector. This strategic shift made us the biggest corporate Bitcoin holder. Analysts speculate this achievement could potentially open doors for our inclusion in the S&P 500 by 2025.

On December 23rd, the Nasdaq-100 Index, comprising the hundred biggest non-financial companies listed on the Nasdaq Composite, is set to include MicroStrategy (MSTR.O). This addition will trigger exchange-traded funds (ETFs) like the Invesco QQQ Trust, overseeing a whopping $325 billion in assets, to acquire the stock automatically.

Approximately, this weighting amounts to around $2.1 billion in purchasing power combined across all ETFs that follow the index (totaling $451 billion). We didn’t factor in SMAs, CITs, or active strategies, so the total could potentially be higher when everything is accounted for. @JSeyff

— Eric Balchunas (@EricBalchunas) December 14, 2024

The index encompasses well-known corporations like Apple, Nvidia, Amazon, Tesla, Google (Alphabet), T-Mobile, Adobe, Cisco, Intuit, and many more.

This year, MicroStrategy, frequently regarded as a stand-in for Bitcoin, has surpassed the performance of Bitcoin itself. The value of MicroStrategy’s shares has increased over six times, while Bitcoin has only risen by approximately 140%.

Bitcoin poised for new ATH

The fact that Bitcoin has surpassed $100,000 recently has significantly bolstered MicroStrategy’s standing in the market. This has resulted in MicroStrategy’s stock performance mirroring the upward trend of Bitcoin.

On Friday, BTC price surged almost 2% to reach $101,762.26. 

Over time, it’s notable that the relationship between MSTR and Bitcoin has been extremely close, considering MicroStrategy’s significant amount of Bitcoin investments.

The company has recently acquired 51,780 BTC for $4.6 billion, raising its total holdings to 331,200 BTC, worth $30 billion. While impressive, this is still less than BlackRock’s iShares Bitcoin Trust, which holds 471,329 BTC. 

In simpler terms, MicroStrategy is advocating for Bitcoin as a crucial reserve asset and protection against inflation, which has sparked similar actions among other firms such as Marathon Digital and Semler Scientific.

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2024-12-14 10:56