Today, Nasdaq announced that MicroStrategy will be included in the Nasdaq 100 index starting December 23, officially becoming part of this globally significant stock index. This event has not only had a significant impact on MicroStrategy's stock price but has also sparked a new round of discussions worldwide about Bitcoin as an investment asset.
As the largest corporate holder of Bitcoin globally, MicroStrategy's business has become closely linked to Bitcoin, and its stock is viewed as a substitute investment for Bitcoin. Joining the Nasdaq 100 not only marks greater market recognition for MicroStrategy as a Bitcoin-centric company but also signals that Bitcoin-related stocks will experience a massive influx of passive investment, further promoting the adoption and value growth of cryptocurrencies.
MicroStrategy was founded in 1989, initially as a business intelligence software development company. However, since 2019, under the leadership of founder Michael Saylor, MicroStrategy has transformed into a Bitcoin investment company, rapidly accumulating a substantial amount of Bitcoin assets through continuous purchases. As of now, MicroStrategy holds 423,650 BTC, accounting for over 2% of the total Bitcoin supply, making it the largest corporate holder of Bitcoin in the world.
Therefore, the stock performance of MicroStrategy has long ceased to rely solely on its traditional business intelligence software business and is now closely tied to Bitcoin's price. MicroStrategy's stock price has surged significantly during Bitcoin bull markets and has also shown notable volatility during Bitcoin price corrections. Investors generally view it as a 'substitute for a Bitcoin ETF' because the company provides indirect exposure to Bitcoin prices through its substantial Bitcoin reserves.
MicroStrategy's founder Saylor, a staunch supporter of Bitcoin, has been dedicated to promoting Bitcoin's mainstream acceptance. In numerous public speeches, he has emphasized that Bitcoin is the most important asset of the 21st century and the best asset to combat inflation and currency devaluation. Bitcoin possesses unparalleled scarcity, divisibility, and ease of storage, making it more suitable for the modern economic system than traditional gold. It is not just an investment tool; it is an essential component of the financial system of the future.
Recently, he even suggested that the United States should sell its gold reserves to buy Bitcoin, which would provide better returns for investors in the long run. Moreover, Bitcoin could help the United States consolidate its global financial leadership; if the U.S. were to adopt Bitcoin as a reserve asset first, it would have a demonstration effect on other countries and bring enormous growth potential to Bitcoin's price. His viewpoint has sparked widespread discussion and brought significant attention to MicroStrategy's Bitcoin investment strategy.
Today, with the rise in Bitcoin prices, MicroStrategy's market value has soared to approximately $92 billion, ranking 40th on the list, becoming one of the largest non-financial companies in the Nasdaq 100 index. The Nasdaq 100 index is a market capitalization-based index consisting of the 100 largest non-financial companies listed on the Nasdaq stock exchange, covering industry giants in various sectors, such as technology, healthcare, and consumer goods, including Apple, Microsoft, and Amazon. Being included in this index not only represents the company's scale and industry influence but also means its stock will attract significant passive investment.
With this inclusion in the Nasdaq 100 index, MicroStrategy's stock (MSTR) will reach a broader investor base, including passive investment funds globally tracking this index. Passive investment funds have become a significant force in global capital markets in recent years, especially exchange-traded funds (ETFs) and mutual funds linked to indices. According to statistics, the scale of globally managed passive investment assets has exceeded $10 trillion. After MicroStrategy's inclusion in the Nasdaq 100 index, these funds will passively allocate its stock, thereby increasing demand for Bitcoin-related assets.
Among the most noteworthy is that global large ETFs like Invesco QQQ Trust (QQQ) will become automatic buyers of MicroStrategy's stock. This phenomenon not only supports MicroStrategy's stock price but may also indirectly drive up Bitcoin's price. QQQ is an ETF based on the Nasdaq 100 index, managing over $300 billion in assets and is one of the preferred investment tools for investors.
According to market analysts, mainstream financial institutions will have to consider this 'Bitcoin alternative asset' in their asset allocations in the future, with every large pension fund, sovereign wealth fund, and individual retirement account in the world able to invest in Bitcoin. Millions of investors could hold Bitcoin indirectly through popular ETFs. This could lead to a one-time influx of new buying for MicroStrategy's stock, attracting at least billions of dollars in passive investment, further enhancing the market position of Bitcoin-related assets.
Analysts point out that the restructuring of the Nasdaq 100 index will take effect on December 23, which means that investors will actively position themselves in MicroStrategy's stock before then. As more and more investors indirectly engage with Bitcoin through tools like ETFs, overall market sentiment will also improve.
There is no doubt that MicroStrategy's success is one of the important signs of Bitcoin's gradual integration into the mainstream financial system. In recent years, more and more large institutions have begun to enter the Bitcoin market, including companies like Tesla and BlackRock. Bitcoin has gradually evolved from a 'speculative tool' to a 'strategic asset,' and the market logic behind it is being accepted by more people.
MicroStrategy's success sets an example for other companies. More and more firms may follow its strategy by incorporating Bitcoin onto their balance sheets as a means to hedge against inflation and enhance asset value. Additionally, as the infrastructure for Bitcoin continues to improve—such as the introduction of ETFs and the expansion of payment scenarios—its application prospects will become even broader. Furthermore, as global acceptance of digital assets gradually increases, Bitcoin is expected to become the 'global reserve capital.'
However, while MicroStrategy's inclusion presents new opportunities for Bitcoin-related stocks, there are also certain risks in the market. MicroStrategy's profitability primarily depends on its Bitcoin investments rather than traditional business operations, which may pose challenges in the future. Additionally, there is growing concern in the market about whether MicroStrategy will successfully be included in the S&P 500 index, with expectations that this change will occur in 2025.
Overall, MicroStrategy's inclusion in the Nasdaq 100 index represents not only an opportunity for MicroStrategy's own development but also provides all investors with a new investment direction. Bitcoin, as part of the modern financial system, is increasingly recognized for its potential.
