MicroStrategy set to join Nasdaq 100, boosting its market visibility and crypto influence.
Analysts project $2.1 billion in ETF net buying from MicroStrategy’s index inclusion.
MicroStrategy BTC focus aligns with FASB crypto accounting rules, boosting S&P 500 potential.
MicroStrategy, a technology firm that has invested heavily in Bitcoin, is on track to join the Nasdaq 100 this month. The announcement is expected to be made on 13 December. Experts also expect increased trading volumes as ETFs tracking the index prepare for the company’s inclusion.
ETF analyst at Bloomberg, Eric Balchunas, posted the information on his social media account. He pointed out that MicroStrategy would represent the 40th holding in the index and account for a 0.47% weight. Balchunas also said that it is possible to see companies like Moderna, which is now in the index, be excluded. This change is regarded as symbolic in view of the recent market experience.
Analyst predict that the Nasdaq 100 inclusion will trigger substantial buying activity. James Seyffart, another Bloomberg ETF analyst, projects net purchases of $2.1 billion in MicroStrategy shares. This volume is approximately one-fourth of the average daily trading volume for ETFs tracking the index. Such significant inflows are expected to boost the company’s market visibility.
According to the analyst, MicroStrategy’s inclusion in Nashdaq 100 may lead to its inclusion in the S&P 500 index next year. However, challenges remain. Seyffart said that a high degree of profitability demanding for the S&P 500 may become an issue here. He pointed out, however, that the probabilities for attaining the status are increasing.
Last year, the Financial Accounting Standards Board (FASB) issued new crypto accounting rules. These rules enable organizations to report holdings, such as Bitcoin, using fair value measurements. This development is good for firms such as MicroStrategy because Bitcoin can now be recorded in the balance sheet under an investment. Experts considered this a strong factor supporting the companies financial position.
MicroStrategy remains the leading corporate Bitcoin holder, and its index inclusion underscores its influence. With Nasdaq 100 membership confirmed, the market eagerly awaits the official announcement on December 13. Meanwhile, the potential S&P 500 entry marks the next milestone for the Bitcoin-heavy firm.
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