MicroStrategy’s inclusion in the Nasdaq-100 index reinforces its position as the largest corporate owner of bitcoin, which could provide an additional boost to its value and increase its liquidity in the market.
MicroStrategy Stock Rises Monday After Nasdaq Announces Bitcoin Proxy Will Join Index Nasdaq-100composed mainly of technology companies. The stock rises 4%, which has an impact on the Cedar of the company listed in the Buenos Aires market.
It happens that Nasdaq rebalances its index Nasdaq-100 every year. Companies selected for inclusion are primarily based on market capitalization rankings at the close of the last trading day of November. Additionally, shares must meet a liquidity requirement and have a certain number of shares outstanding.
The inclusion in the index, which will take effect on December 23, follows MicroStrategy’s huge rise this year. In 2024, the stock climbed 547%, far outpacing the S&P 500’s 27% gain, as the price of Bitcoin hit all-time highs. The price of BTC is around US$103,806.69, with an increase of less than 1% on the day.
What the landing of MSTR on the Nasdaq 100 means
When analysts, journalists and reporters refer to the Nasdaq, they usually talk about the Nasdaq Composite (COMP:IND), and not the Nasdaq 100 (NDX). The difference between the two is that the Nasdaq Composite measures the changes of more than 2,500 stocks listed on the Nasdaq Stock Exchange (NDAQ), while the Nasdaq 100 is a market capitalization-weighted index that includes the 100 largest non-financial companies that they are listed on that stock exchange. However, both track domestic and international firms, unlike popular indices like the Dow Jones Industrial Average (DJI), which only measures major U.S. companies.
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The listing also means MicroStrategy will be in the popular Invesco QQQ Trust ETF, which tracks the Nasdaq-100. This will likely generate passive flows into MicroStrateg sharesand, which could give it an extra boost.
Michael Saylor, founder and president of the company, also announced on Monday morning on the social network . He now owns 439,000 bitcoin.
MicroStrategy has been accumulating bitcoin reserves for years, making it a proxy for the cryptocurrency.
“MSTR’s bitcoin purchasing program is unprecedented in the market and makes it the largest corporate owner of bitcoin (2% of supply, equivalent to a market value of $44 billion),” wrote Gautam Chhugani, an analyst at Bernstein, on Monday. “The listing on the Nasdaq-100 further enhances MSTR’s market liquidity, further expanding its capital wheel and bitcoin purchasing program.”
Source: Ambito
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