Microstrategy’s $43 billion bitcoin bet propels it into the Nasdaq-100, fueling bullish momentum as institutional investors are expected to prepare for major crypto-driven gains.
Nasdaq Adds $43B Bitcoin Giant Microstrategy: Institutional Buying Frenzy Ahead?
Nasdaq Inc., a leading global technology company and stock exchange operator, announced its annual adjustments to the Nasdaq-100 Index on Friday, with changes set to take effect before markets open on Dec. 23. The reshuffle will introduce three new members: Palantir Technologies Inc. (Nasdaq: PLTR), Microstrategy Inc. (Nasdaq: MSTR), and Axon Enterprise Inc. (Nasdaq: AXON). These changes reflect the index’s focus on including the largest non-financial companies listed on Nasdaq.
Microstrategy’s stock has soared nearly 500% year-to-date, driven by its aggressive bitcoin investment strategy. Led by executive chairman Michael Saylor, a well-known advocate for bitcoin, the company has evolved into a significant bitcoin investment vehicle. It currently hodls 423,650 BTC, valued at approximately $43 billion. This strategic approach has strengthened investor confidence, linking the stock’s performance closely with bitcoin’s price movements.
Analysts anticipate that its addition to the index will boost institutional interest, as funds tracking the Nasdaq-100 will acquire MSTR shares. Prior to the inclusion announcement, Gautam Chhugani, an analyst at financial research firm Bernstein, highlighted this impact:
This would lead to inclusion of MSTR in some of the largest ETFs such as QQQ (5th largest ETF) etc, leading to one-time fresh buying … and ongoing participation in future inflows.
As part of the reshuffle, Illumina Inc. (Nasdaq: ILMN), Super Micro Computer Inc. (Nasdaq: SMCI), and Moderna Inc. (Nasdaq: MRNA) will be removed. The Nasdaq-100 Index, a benchmark for major financial products such as the Invesco QQQ Trust (Nasdaq: QQQ), undergoes annual reconstitution to maintain its representation of the largest non-financial companies.
Chhugani also commented on potential challenges for Microstrategy’s inclusion in the S&P 500, stating:
The market will likely set its sight on S&P 500 inclusion for 2025. Currently, due to profitability of its software business, it may be challenging to be considered for S&P 500 inclusion.
As bitcoin gains mainstream acceptance, Microstrategy’s future appears increasingly tied to its role as one of the largest corporate holders of cryptocurrency, amplifying its presence in both the tech and financial sectors.
