Michael Saylor's MicroStrategy could soon be listed on the Nasdaq 100, according to Eric Balchunas and James Seyffart, two respected ETF analysts. Classified as a technology stock, the company must get around the restriction that financial companies are ineligible.
If this prediction comes true, the listing will take place on Friday, December 23, the day before Christmas.
MicroStrategy no Nasdaq 100?
Balchunas first made the prediction in a social media post, claiming that MicroStrategy would replace COVID-19 vaccine maker Moderna.
Fueled by its consecutive Bitcoin purchases, MicroStrategy’s stock price has been rising, and it recently became one of the 100 largest publicly traded companies in the United States (U.S.). However, NASDAQ needs to approve it to be listed.
Expected additions to the Nasdaq 100. Source: Eric Balchunas
As a publicly traded company, Nasdaq has made limited entries into the crypto industry in recent years. Last year, the SEC halted plans to launch a crypto custody business, and the US exchange has not publicly discussed restarting them.
In August, it facilitated BlackRock’s efforts to gain options trading on its Ethereum ETF. Beyond that, however, Nasdaq has been quiet on the crypto front.
Meanwhile, James Seyffart agreed with Balchunas' views through another post. Seyffart highlighted that Nasdaq does not allow financial companies to be on its list, and MicroStrategy could technically qualify.
MicrsoStrategy’s fate is tied to Bitcoin
The company’s fate is inexorably tied to Bitcoin’s performance, and it is therefore arguably a financial company. However, it is currently listed as a technology stock and cannot be re-rated until March.
“Here are the dates for the ICB [Industry Classification Benchmark] reclassification. So unless they’ve already started the process of reclassifying MicroStrategy as a financial stock… we think it should be. That said — that’s the primary risk of not being included in my opinion,” Seyffart said.
Indeed, MicroStrategy is one of the world’s largest Bitcoin whales, but the company started out as a technology company. While it routinely invests huge amounts of capital into Bitcoin, which has largely contributed to its 500% stock market growth this year, MicroStrategy is still a technology stock in Nasdaq’s consideration.
Ultimately, this is just a prediction, albeit one from two experienced ETF analysts.
The article MicroStrategy to Enter Nasdaq 100 Index This Month, Analysts Reveal appeared first on BeInCrypto.
