According to Eric Balchunas and James Seyffart, two prominent ETF analysts, MicroStrategy could soon enter the Nasdaq 100. MicroStrategy is still classified as a technology stock, circumventing the restriction that financial companies are not eligible.
If this forecast comes true, the event will take place this Friday for a listing on December 23.
MicroStrategy on Nasdaq 100?
Balchunas first announced this forecast through a social media post yesterday, saying that MicroStrategy will replace Moderna, the COVID-19 vaccine manufacturer.
Fueled by successive Bitcoin purchases, MicroStrategy’s stock price has skyrocketed, and was recently among the top 100 publicly traded companies in the US. However, Nasdaq approval is needed to list the company.
As a publicly traded company, Nasdaq has made limited moves into the crypto industry in recent years. Last year, the SEC paused the company’s plans to launch a crypto custody service, and the exchange has not publicly discussed resuming those plans.
In August, Nasdaq supported BlackRock’s efforts to get options trading for its Ethereum ETF. But beyond that, Nasdaq has been largely silent on the crypto front.
Meanwhile, James Seyffart agree with Balchunas’ comments via another post. He pointed out that Nasdaq does not allow financial companies on its listings, and MicroStrategy could technically qualify.
The fate of this company is closely tied to the performance of Bitcoin, and therefore, can be considered a financial company. However, MicroStrategy is currently listed as a technology stock and cannot be re-rated until March.
“Here are the dates for ICB reclassification [Industry Classification Benchmark]. So unless they have started the process of reclassifying MicroStrategy as a financial stock… we think it should be included. However, this is the main risk for not being included, in my opinion,” Seyffart declare.
Indeed, MicroStrategy is one of the largest whales holding Bitcoin globally, but the company began as a technology company. Despite regularly investing large amounts of money in Bitcoin, which has largely contributed to the stock’s 500% increase this year, MicroStrategy is still considered a technology stock by Nasdaq.
Ultimately, this is just a prediction, though from two seasoned ETF experts. Regardless, there are important deadlines to consider. If MicroStrategy joins the Nasdaq 100, the announcement will be made later this week.