MicroStrategy, which promotes itself as one of the developers of the Bitcoin network, showed on Wednesday that the surge in the company’s shares due to its rising Bitcoin holdings and the increase in the company’s market value due to the massive Bitcoin rally have propelled the company into the tech-heavy Nasdaq 100 index.
This comes after MicroStrategy shares have surged nearly 500% this year alone on the back of Bitcoin gains, boosting its market cap to $90 billion and the company is now poised to join the Nasdaq 100 index. According to Reuters, the potential revision and move of the stock to the Nasdaq index is expected to be announced on Friday.
The potential inclusion of MicroStrategy shares in the Nasdaq could further boost the company's stock, as more investment firms may include it in their portfolios, but for MicroStrategy to be eligible for inclusion in the Nasdaq, the company must be among the index's 100 largest companies by market capitalization, meet certain trading volume requirements, and not be in the financial sector.
In terms of trading, MicroStrategy shares witnessed a 7.45% increase during Wednesday’s trading session, recording $404.39 during today’s US stock market trading session.
It is worth noting that MicroStrategy - which adopted Bitcoin as a primary asset in 2020 - owns about 400,000 Bitcoins, making it the largest company holding the cryptocurrency, and its Bitcoin holdings are estimated to be worth about $42 billion. However, the company has faced financial losses, including a net loss of $340 million during the third quarter of the year.
