#MicroStrategyVsNasdaq MicroStrategy Stock Could Get Added to the Nasdaq 100 Because of a Quirk.
MicroStrategy gets classified as a software company due to its main business before it became the largest corporate holder of Bitcoin with more than $40 billion of the cryptocurrency. Software probably accounts for less than 5% of the value of the company.
Nasdaq doesn’t comment on which companies are potentially eligible for inclusion in the Nasdaq 100, but it makes available the industry classification of Nasdaq companies, allowing investors to make their own assessment. Nasdaq uses Industry Classification Benchmark (ICB), a product of FTSE International Limited, as the basis for its classifications.
Barrons
FEATURE
MicroStrategy Stock Could Get Added to the Nasdaq 100 Because of a Quirk
The firm gets classified as a software company due to its main business before it became the largest corporate holder of Bitcoin.
MicroStrategy, the largest corporate holder of Bitcoin, could get added to the Nasdaq 100 because it’s classified as a software company. Above, Michael Saylor, chairman of MicroStrategy.
LIAM KENNEDY/BLOOMBERG
A classification quirk could get MicroStrategy admitted to the Nasdaq 100 index at its annual reconstitution due to be announced on Dec. 13 after the close of trading.
Palantir Technologies , MicroStrategy, Axon Enterprise , DraftKings , Alnylam Pharmaceuticals , United Airlines , and eBay lead the list of companies (ranked in order of market value on the cutoff date of Nov. 29) that could be added to the index, Barron’s estimates.
The Nasdaq 100 is composed of the 100 largest nonfinancial companies in the Nasdaq Composite index. This likely eliminates from contention such large Nasdaq-listed companies as CME Group , Coinbase Global , Interactive Brokers, and even Equinix , a real estate investment trust.
MicroStrategy gets classified as a software company due to its main business before it became the largest corporate holder of Bitcoin with more than $40 billion of the cryptocurrency.