On December 17, 2024 - According to information from Reuters, MicroStrategy (MSTR.O), known for its large Bitcoin holdings, has just been selected to join the Nasdaq 100 index, opening a new chapter for the interaction between the stock market and the crypto market. With this index valued at $25.7 trillion, MicroStrategy's inclusion will provide indirect exposure to Bitcoin through the company's holdings of up to $44 billion in Bitcoin, accounting for about 2% of the total global Bitcoin supply.
MicroStrategy's entry into the Nasdaq 100 not only marks an important milestone for the company but could also stimulate investment demand for Bitcoin from index funds, which has been reflected in the staggering 550% increase in the company's stock price this year alongside Bitcoin's growth. It is expected that ETFs like QQQ may buy shares of MicroStrategy to maintain a proportional stake in the Nasdaq 100 index, thereby helping to increase MicroStrategy's stock price and allowing the company to purchase more Bitcoin through bond and securities offerings.
Another notable piece of information is that Bitcoin has surged to a record price above $107,000 shortly after President-elect Donald Trump suggested creating a strategic Bitcoin reserve for the United States, similar to the existing strategic oil reserve.
Notably, MicroStrategy's stock has increased 3,200% since adopting Bitcoin as a strategic reserve asset in 2020, under the leadership of co-founder Michael Saylor. The company has doubled its Bitcoin holdings this year through the issuance of convertible bonds and stock sales. Nevertheless, the company reported a net loss of $340 million for the three months ending September 20, marking their third consecutive quarterly loss.
MicroStrategy's entry into the Nasdaq 100 not only brings significant benefits to the company but also marks a major step forward for the crypto market, forecasting a vibrant future with differing opinions from both supporters and opponents.
Additionally, companies like Riot Platforms and some smaller biotech firms like Enlivex Therapeutics and Hoth Therapeutics have also decided to allocate a portion of their cash into Bitcoin, reflecting the growing trend of companies integrating crypto into their investment portfolios.
According to an announcement from Nasdaq, other companies like Palantir and Axon Enterprise will also join this index, replacing Illumina, Super Micro, and Moderna. This restructuring of the index will begin trading on December 23.
Detailed information from Reuters will help you stay updated on the latest moves in the US and global markets. Stay tuned to not miss these breaking news.
