MicroStrategy, led by Bitcoin advocate Michael Saylor, will be added to the prestigious Nasdaq-100 Index.
Nasdaq announced the decision on December 13, highlighting the firm’s significant growth driven by its aggressive Bitcoin strategy. The inclusion will take effect before the market opens on December 23, marking another milestone for the software company turned corporate Bitcoin giant.
MicroStrategy’s Bitcoin strategy fuels growth
MicroStrategy has experienced a remarkable surge in its stock price this year, largely due to its bold Bitcoin investments. The firm’s shares have skyrocketed more than six-fold in 2024, pushing its market valuation to nearly $94 billion. This growth has made it one of the most valuable stocks on the Nasdaq, earning it a spot among the top 100 companies by market capitalization.
The company, which originally focused on software solutions, pivoted its strategy in 2020 by acquiring Bitcoin as a store of value. This shift came amid declining revenue from its core software business. MicroStrategy has since become the largest corporate holder of Bitcoin, a move that has significantly boosted investor confidence.
Nasdaq-100 shake-up and market implications
MicroStrategy will join Palantir Technologies (PLTR) and Axon Enterprise (AXON) as new members of the Nasdaq-100 Index. These additions come at the expense of Illumina, Super Micro Computer, and Moderna, which were removed from the index.
Now that MSTR is getting added to the Nasdaq, every large pension fund, sovereign wealth fund, and individual retirement account in the world is going to have Bitcoin exposure.
— Will (@WClementeIII) December 14, 2024
Inclusion in the Nasdaq-100 is significant for any company. Exchange-traded funds (ETFs) that track the index are expected to purchase shares of MicroStrategy, potentially driving its stock price higher. Analysts at Bernstein predict that this development could pave the way for MicroStrategy’s inclusion in the S&P 500 as early as 2025. They also believe the company’s prospects will improve further in 2025 as its visibility grows.
MicroStrategy’s Bitcoin holdings and industry reaction
As of December 8, MicroStrategy held approximately 423,650 Bitcoins, acquired for $25.6 billion. With Bitcoin’s recent price surge, the value of these holdings has climbed to around $42.4 billion. Analysts believe the firm’s Bitcoin purchases will remain a cornerstone of its strategy. Bernstein’s recent analysis highlighted that MicroStrategy’s management remains comfortable buying Bitcoin even at its current range of $95,000 to $100,000.
The broader crypto community has responded positively to MicroStrategy’s inclusion in the Nasdaq-100. Crypto analyst Will Clemente shared his thoughts on X, while Bitwise Invest’s Jeff Park described the situation as the “trade of the decade” and urged investors to prepare for continued momentum.
Bitcoin has recently surpassed the $100,000 mark for the first time, driven by renewed optimism in the crypto sector. Analysts attribute this rise to expectations of lighter regulatory pressures following the election of U.S. President-elect Donald Trump.
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