MicroStrategy’s inclusion in the tech-heavy Nasdaq-100 Index has been announced by the exchange operator. The change will take effect before the market opens on Dec. 23, according to Nasdaq. This move follows a significant surge in the shares of the company, known for its investments in bitcoin.
Being added to the index typically results in a boost to the stock’s price, as exchange-traded funds that track the index’s performance purchase shares of the newly included firm. Along with MicroStrategy, data analytics firm Palantir Technologies and Taser maker Axon Enterprise will also be added to the Nasdaq-100 Index. On the other hand, gene-sequencing equipment maker Illumina, AI server maker Super Micro Computer, and vaccine maker Moderna will be removed, as per Nasdaq’s announcement.
MicroStrategy, known for its aggressive investments in bitcoin, has witnessed a remarkable increase in its shares this year, reaching a market value of nearly $94 billion. The company started acquiring and holding bitcoin in 2020, becoming the largest corporate holder of the cryptocurrency.
Analysts believe that MicroStrategy’s decision to invest in bitcoin has made its stock more attractive, as its performance often aligns with that of the cryptocurrency. Bernstein analysts predict that the market may aim for MicroStrategy’s inclusion in 2025 following its addition to the Nasdaq-100 Index.
The brokerage also foresees positive prospects for the company in the upcoming year, expecting increased visibility and recognition beyond new ETF inflows due to its inclusion in the Nasdaq-100 Index. The recent rally in MicroStrategy’s stock can be attributed to the optimism in the crypto sector following U.S. President-elect Donald Trump’s victory.
Furthermore, MicroStrategy’s confidence in buying bitcoin in the $95K-$100K range has not wavered, as indicated by Bernstein analysts. The company currently holds approximately 423,650 bitcoins purchased for around $25.6 billion, with the investment now valued at about $42.43 billion.
