MicroStrategy is currently in a critical phase as it is in the process of integrating into the Nasdaq 100 index. The decision is expected to be officially announced on December 13 and implemented on December 23.
An important milestone in the Nasdaq 100
The Nasdaq 100 Index, which tracks the largest non-financial companies on the Nasdaq stock exchange, will be rebalanced, which would include MicroStrategy in its portfolio.
Analysts say this should trigger about $2.1 billion in net ETF inflows as the funds rebalance their portfolios with stocks from MicroStrategy. That inflow amounts to about 20% of the average daily trading volume for MicroStrategy stock, so financially it’s a significant event for the company and its shareholders.
🚀Big news: MicroStrategy ($MSTR) joins the Nasdaq-100!
This prestigious index includes the largest non-financial companies on the NASDAQ, and now adds a name synonymous with #Bitcoin possessions.
Read below why this is important 👇🧵
— OSL (@osldotcom) December 11, 2024
Based on its revolutionary Bitcoin stockpiling technique, which once controlled about 2% of the global supply, MicroStrategy has experienced a stratospheric rise in its market share.
The company had that from early December collected more than 423,650 Bitcoinswhich totaled a value of almost $41 billion.
Bitcoin price in the green zone today. Source: Coingecko
Market visibility has increased as a result of such an active strategy attracted passive investors who are interested in Bitcoin in different ways. An example of this is the exchange-traded funds (ETFs) that track the Nasdaq 100 index, with MicroStrategy shares providing indirect access to cryptocurrency.
The role of Michael Saylor
Michael Saylor, co-founder and chairman of MicroStrategy, is leading this move. His promotion of Bitcoin has made the company a frontrunner in cryptocurrency investment within conventional businesses.
$MSTR will probably be added $QQQ on 23/12 (with announcement on 13/12). Moderna is likely to be restarted (symbolically). Below you will find the best estimate of additions/decreases via @JSeyff. Probably a weight of 0.47% (40th largest importance). There are $550 billion worth of ETFs that track the index. S&P 500 likely to add next year. pic.twitter.com/rmTavtvWQL
— Eric Balchunas (@EricBalchunas) December 10, 2024
Saylor recently tried to convince Microsoft to include Bitcoin as a reserve asset; However, this suggestion was ultimately rejected by the company’s board of directors. Nevertheless, Saylor’s concept continues to motivate other companies, such as Tesla and Metaplanet, to consider investing in crypto.
Eric Balchunas, senior ETF analyst at Bloomberg, has confirmed that MicroStrategy may be included in the top 100 of the index. He predicted that Palantir Technologies will be involved, alongside the Michael Saylor-led company.
BTCUSD trading at $97,923 on the daily chart: TradingView.com
The company’s upcoming entry into the Nasdaq demonstrates its innovation and market flexibility. Analysts estimate that MicroStrategy could join the S&P 500 in 2026 if the stock performs well, strengthening its position in the traditional financial sector.
Impact on investors
MicroStrategy’s push for membership in the Nasdaq 100 is an example of a broader trend of bitcoin assimilation into conventional finance. With substantial capital inflows expected and growing recognition of Bitcoin’s potential, this moment could mark a crucial turning point for MicroStrategy and the future of digital assets within conventional investment paradigms.
Featured image from Corporate Finance Institute, chart from TradingView