Sources from Reuters reported that on December 16, the software company MicroStrategy made significant progress in preparing to join Nasdaq 100, a well-known technology index in the US. This event not only boosted MicroStrategy's stock price by about 3% but also opened new prospects for indirectly accessing Bitcoin for investors of this index.
MicroStrategy currently holds $44 billion worth of Bitcoin, accounting for about 2% of the total supply of the largest cryptocurrency in the world. With MicroStrategy's entry, funds tracking the Nasdaq 100, such as Invesco QQQ Trust, may need to buy shares of MicroStrategy, thereby continuing to drive up the price of this stock and indirectly stimulate Bitcoin prices.
Mr. Matthew Dibb, investment director of Astronaut Capital, commented that this could be the first step towards a potential 'capital rotation cycle' that could push Bitcoin prices higher. ETF funds will buy MicroStrategy stocks to ensure their portfolio reflects the Nasdaq 100 index, which could enable MicroStrategy to purchase more Bitcoin through bond issuance, stock sales, and other forms of fundraising.
Since MicroStrategy chose Bitcoin as a reserve asset in 2020, the company's stock price has soared by 3,200%. Notably, Bitcoin reached a record high of over $106,000 after President-elect Donald Trump hinted at creating a Bitcoin reserve strategy similar to the US strategic petroleum reserves.
With a market capitalization exceeding $100 billion, more than twice the value of the Bitcoin the company holds, MicroStrategy continues to reinforce its 'buy and hold long-term' strategy, according to analyst Gautam Chhugani. This is also a significant milestone for the crypto community, especially as other businesses like Riot Platforms and some smaller biotech companies are shifting their investments towards Bitcoin.
This is indeed a major turning point for the coin, especially as the voices of both optimists and pessimists about this market are expected to become increasingly lively in the coming months, as Mr. Dibb predicted. Investors who have bet against MicroStrategy's stock have incurred a total loss of $9.7 billion so far this year.
Recent news also announced that Palantir and Axon Enterprise will also join Nasdaq 100, replacing Illumina, Super Micro, and Moderna. These changes will take effect from December 23.
Let's look forward to the exciting developments ahead in the crypto market, especially as major companies continue to expand their influence and presence in the world of cryptocurrency.
