MicroStrategy’s Nasdaq-100 debut as $94B Bitcoin bet redefines the index

Nasdaq has revealed that Michael Saylor’s MicroStrategy firm will be included in the Nasdaq-100 Index. The exchange operator said on Friday, after a meteoric surge in the shares of the Bitcoin buyer.

According to Nasdaq, the change comes into effect before the market opens on Dec. 23. Being added to the index usually drives up the stock’s price, as exchange-traded funds aiming to mirror the index’s performance purchase shares of the newly included company.

According to a statement released by Nasdaq on December 13, MicroStrategy is one of three companies to join the index, alongside Palantir Technologies Inc. (PLTR) and Axon Enterprise, Inc. (AXON). However, Gene-sequencing equipment maker Illumina, AI server maker Super Micro Computer, and vaccine maker Moderna were removed.

MicroStrategy joins Nasdaq-100 as Bitcoin bet drives $94B surge

MSTR now ranks among Nasdaq’s top 100 stocks by market cap. The aggressive investor in the world’s largest crypto asset has seen its shares soar more than six-fold this year, taking its market value to almost $94 billion.

MicroStrategy, a software company, began buying and holding Bitcoin in 2020 as revenue from its software business waned. It is now the most significant corporate holder of the cryptocurrency.

Analysts have stated that MicroStrategy’s choice to acquire BTC to safeguard the value of its reserve assets has increased the attractiveness of its stock, which generally tracks the cryptocurrency’s performance. Bernstein analysts predict that the market will likely focus on MicroStrategy’s inclusion in the S&P 500 in 2025 after its addition to the Nasdaq-100.

The brokerage also believes the company’s outlook will continue improving next year as it anticipates “greater visibility and recognition beyond new ETF inflows.” 

Bitcoin has surged in recent weeks as the election of U.S. President-elect Donald Trump boosted the crypto sector’s optimism about reduced regulatory obstacles. Earlier this month, the digital asset soared above $100,000 for the first time.

Bernstein analysts noted that management has shown no signs of slowing this (Bitcoin-buying) down and is comfortable buying the asset in the $95K-$100K range.

The crypto industry reacts as MicroStrategy’s Nasdaq inclusion sparks optimism

MicroStrategy held roughly 423,650 Bitcoins acquired for about $25.6 billion, based on the average purchase price as of Dec. 8. Based on Bitcoin’s previous close, the investment is worth around $42.4 billion.

Crypto analyst Will Clemente shared his thoughts in a December 13 post on X, saying:

Now that MSTR is getting added to the Nasdaq, every large pension fund, sovereign wealth fund, and individual retirement account in the world is going to have Bitcoin exposure.

— Will (@WClemente) December 14, 2024

Jeff Park, head of alpha strategies at Bitwise Invest, commented that the trade of the decade is just getting started and advised to buckle up.