In the latest development in the coin market, MicroStrategy, the famous software company and top Bitcoin buyer, has officially been added to the Nasdaq 100 technology index. According to Reuters, this advancement has created a positive wave, pushing MicroStrategy's stock price up by 6% in pre-market trading.
MicroStrategy, with its Bitcoin holdings worth $44 billion (equivalent to about 2% of the total global Bitcoin supply), joining the Nasdaq 100 index could provide additional richness and indirect exposure for investment funds tracking this index. Since this company began accepting Bitcoin as a treasury asset in 2020 under the leadership of co-founder Michael Saylor, MicroStrategy's stock has surged by up to 3,200%, despite recent reports of net losses as Q3 comes to a close.
Investment expert Matthew Dibb from Astronaut Capital believes that this could be the beginning of a capitalization cycle, as funds like Invesco QQQ Trust (the largest ETF tracking the Nasdaq-100) may increase their holdings of MicroStrategy stock. This not only boosts the stock price but may also help the company accumulate more Bitcoin through capital transactions, bonds, and stocks.
Furthermore, Bitcoin has reached a record high of over $106,000 following the news that President-elect Donald Trump is expected to launch the U.S. strategic Bitcoin reserve fund. This is seen as a significant milestone for the development of crypto, with MicroStrategy and Saylor being the most discussed names in this field in the near future.
Additionally, other companies like Palantir and Axon Enterprise have also been added to this list, helping to reshape the Nasdaq 100 index starting December 23, replacing Illumina, Super Micro, and Moderna.
Source: Reuters
