MicroStrategy expected to crack Nasdaq 100 — Bloomberg Intelligence
2024-12-11
Category: None

MicroStrategy (MSTR) is expected to join the Nasdaq 100 stock index on Dec. 23, with an announcement coming as soon as this week, according to a post on the X platform by Bloomberg Intelligence analyst Eric Balchunas. 
The placement will rank MicroStrategy, a software company that became a de facto Bitcoin BTCUSD hedge fund in 2020, among the Nasdaq stock exchange’s 100 largest stocks by market capitalization. 
It will also expose MSTR to hundreds of billions of dollars in institutional capital flows tracking the widely-followed index. 
MicroStrategy will likely see “a 0.47% weight (40th biggest holding). There’s $550b of ETFs tracking the index,” Balchunas said on Dec. 10. 
For instance, inclusion in the Nasdaq 100 will add MSTR to the portfolio of Invesco QQQ Trust (QQQ), an exchange-traded fund (ETF) with approximately $322 billion in assets under management (AUM). 
“$MSTR is likely to be added to $QQQ on 12/23 (w/ announcement coming 12/13). Moderna likely to get boot (symbolic),” Balchunas said. 
Moderna is a biotechnology company that developed vaccines used against the COVID-19 virus. 
Balchunas added that MSTR will probably join the S&P 500 — the world’s most widely-followed stock index — in 2025.
Bitcoin buying spree
Beginning in 2020, MicroStrategy has spent approximately $25 billion buying Bitcoin as part of a corporate treasury strategy spearheaded by co-founder Michael Saylor.
Its buying spree has earned more than $17 billion in unrealized profits, according to data from MSTR Tracker. MicroStrategy currently owns nearly 425,000 BTC worth more than $42 billion, the data shows.
The strategy paid off as BTC’s price steadily rose, breaking $100,000 per coin in December.
Since 2020, MSTR has gained about 2,500%, outperforming practically every sizeable public company except Nvidia. 
The stock now trades at a more than 2x premium to the value of its BTC treasury. Benchmark Research analyst Mark Palmer says the stock could continue to rise as MicroStrategy doubles down on BTC buying. 