MicroStrategy, the largest publicly listed Bitcoin holding business, is officially included in the Nasdaq-100 Index.
The event underscores the company’s growing prominence, fueled by a significant increase in stock value in tandem with Bitcoin’s rise this year.
MicroStrategy’s launch in the Nasdaq-100 marks a Cryptocurrency milestone
The contribute of MicroStrategy follows the removal of Illumina, Super Micro Computer, and Moderna, with Palantir Technologies and Axon Enterprise also joining the index. These changes will take effect before the market opens on December 23.
Nasdaq-100 tracks the top 100 non-financial companies listed on Nasdaq, including giant corporations such as Apple, Microsoft, Tesla and Nvidia. MicroStrategy’s entry into this elite group symbolizes increased institutional recognition of Cryptocurrency-related companies.
Exchange-traded funds (ETFs) that mimic the Nasdaq-100, such as Invesco QQQ, will integrate MicroStrategy into their portfolios. The move could increase the company’s exposure to passive investments and deepen its connection to Bitcoin’s performance.
Financial analysts consider this development essential. Rajat Soni emphasized that MicroStrategy stock benefits from Bitcoin’s positive trend, creating a spiral where an increase in passive investing can increase capital raising capacity. This, in turn, allows the company to buy more Bitcoin, which can fuel the Cryptocurrency price momentum.
“As the price of Bitcoin increases, MicroStrategy’s stock price increases, and its ranking in NASDAQ also increases. [Điều này] meaning its allocation to stocks increased and more money had to flow passively into MSTR. MicroStrategy can then issue more debt and buy more Bitcoin,” Soni said.
However, some caution still exists. Bloomberg ETF analyst James Seyffart warning that MicroStrategy could face reclassification as a financial entity in March, which could result in its removal from the index. This reclassification risk stems from the company’s heavy reliance on Bitcoin for its valuation rather than its core business.
MicroStrategy’s transformation has revolved around Bitcoin as its primary reserve asset. The company currently holds more than 423,650 Bitcoin, worth approximately $43.18 billion. Notably, 40% of this total was purchased in the past month, demonstrating the company’s strong commitment to Cryptocurrency accumulation.
Meanwhile, Executive Chairman Michael Saylor attributed the company’s success to its strategy of focusing on Bitcoin. Over the past four years, MicroStrategy’s stock is up 124%, outperforming major benchmark indexes like the S&P 500.
Saylor emphasized that the rise of Bitcoin has strengthened the company’s competitive position, asserting its leadership role in the growing financial ecosystem.