MicroStrategy Joins Nasdaq 100, Bringing Bitcoin-Linked Stocks to Mass Investment
The Bitcoin-focused firm MicroStrategy secures a spot among the Nasdaq's elite, potentially reshaping the cryptocurrency investment landscape.
Key Points:
- Nasdaq has confirmed that MicroStrategy is now included in its Nasdaq 100 index.
- Recent assessments position MicroStrategy as the 40th largest entity in the Nasdaq 100.
- This inclusion grants MicroStrategy access to one of the world’s largest ETFs, Invesco’s QQQ Trust, which manages over $300 billion.
MicroStrategy (MSTR) is poised to join the ranks of prominent companies after becoming the first bitcoin-centric entity in the Nasdaq-100 Index.
The Nasdaq-100 tracks the 100 largest non-financial firms on the exchange, encompassing industry leaders such as Apple, Nvidia, Microsoft, Amazon, Meta, Tesla, and Costco.
Following Nasdaq's announcement of the inclusion, the price of bitcoin (BTC) experienced a modest uptick, surpassing $102,000 shortly afterward.
As of November 29, MicroStrategy's market capitalization was approximately $92 billion, marking it as the 40th largest in the Nasdaq 100, with an anticipated 0.47% weight in the index, as noted by Bloomberg Intelligence's Eric Balchunas.
This development will significantly enhance the Nasdaq 100's exposure to bitcoin, as MicroStrategy possesses around $42 billion in bitcoin assets. This will likely open the doors for billions of dollars in passive investments, with ETFs monitoring the Nasdaq 100 holding over $550 billion in assets.
James Van Straten from CoinDesk remarked that the inclusion of MicroStrategy could be one of the defining moments of 2024, second only to the introduction of US spot-listed ETFs. He indicated that the funds involved typically purchase stock consistently, further boosting demand for MicroStrategy shares.
However, there are concerns from James Seyffart, also at Bloomberg Intelligence, stating that MicroStrategy's presence in the index could be temporary due to potential reclassification as a financial entity by March, driven by its significant bitcoin holdings rather than its operational activities. CEO Michael Saylor has suggested plans to convert the firm into a “bitcoin bank,” reducing its status as a technology business.
The restructuring of the Nasdaq 100 and related ETFs is set to take effect on December 23.
