MicroStrategy, the world's largest publicly traded Bitcoin holding company, is making its debut on the Nasdaq-100 Index.
This milestone highlights the company's growing prominence, driven by a significant increase in its share value coupled with the rising price of Bitcoin this year.
MicroStrategy’s Nasdaq-100 Debut Marks Crypto Milestone
MicroStrategy’s inclusion follows the removal of Illumina, Super Micro Computer and Moderna, with Palantir Technologies and Axon Enterprise also joining the index. These changes will take effect before the market opens on December 23.
The Nasdaq-100 tracks the top 100 non-financial companies listed on the Nasdaq exchange, including giants such as Apple, Microsoft, Tesla and Nvidia. The addition of MicroStrategy to this select group signals growing institutional recognition of crypto-related companies.
Exchange-traded funds (ETFs) that track the Nasdaq-100, such as Invesco QQQ, will now incorporate MicroStrategy into their portfolios. The move could broaden the company’s exposure to passive investing and deepen its link to Bitcoin’s performance.
Financial analysts see this development as crucial. Rajat Soni noted that MicroStrategy’s stock is benefiting from Bitcoin’s upward trajectory, creating a cycle where increased passive investments could improve its ability to raise capital. This, in turn, allows the company to acquire more Bitcoin, potentially boosting cryptocurrency prices even further.
As the price of Bitcoin rises, MicroStrategy’s stock price rises, and its NASDAQ ranking increases. [This] means that the allocation to its stock increases and more money has to flow passively into MSTR. MicroStrategy can then issue more debt and buy more Bitcoin, Soni said.
Bitcoin Addiction?
However, some caution remains. Bloomberg ETF analyst James Seyffart warned that MicroStrategy could face a reclassification as a financial entity by March, which could result in its removal from the index. This reclassification risk stems from the company’s heavy reliance on Bitcoin for its valuation rather than its core operations.
MicroStrategy’s transformation has centered on Bitcoin as its primary treasury asset. The company currently holds over 423,650 Bitcoin, valued at approximately $43.18 billion. Furthermore, 40% of this total was acquired in the last month, demonstrating its aggressive commitment to cryptocurrency accumulation.
MicroStrategy MSTR shares. Source: X/Michael Saylor
Meanwhile, CEO Michael Saylor attributes the company’s success to its Bitcoin-focused strategy. Over the past four years, MicroStrategy’s stock has surged 124%, outperforming major benchmarks like the S&P 500.
Finally, Saylor emphasized that Bitcoin adoption has strengthened the company’s competitive position, solidifying its role as a leader in the evolving financial ecosystem.
The article With entry into Nasdaq, MicroStrategy’s bet on Bitcoin paid off was first seen on BeInCrypto Brasil.
