MicroStrategy, as the leading company that acquired Bitcoin, is expected to join the Nasdaq 100 index, but analysts have given the company a notice.
Bloomberg ETF analyst Eric Balchunas, in his X post on Dec. 11, stated that MicroStrategy (MSTR) would like to be added to the Nasdaq 100 index on Dec. 23, the announcement set to be on Thursday.
This development came after the company issued more financial bonds and senior notes to institutional investors in the United States in order to acquire more Bitcoin (BTC) in the future.
He also expects the company to enter the S&P 500 index by next year, which is considered difficult by some analysts to achieve in the near future.
“$MSTR is likely to be added to $QQQ on 12/23 (w/ announcement coming 12/13). Moderna likely to get boot (symbolic). Below is best guess of adds/drops. Likely a 0.47% weight (40th biggest holding). There’s $550b of ETFs tracking the index. S&P 500 add next yr prob,”
Balchunas says
James Seyffart, another Bloomberg ETF analyst, also stated that the odds for MicroStrategy to enter the S&P 500 are rising after the Nasdaq 100. He projects that this move could bring net buying of at least $2.1 billion, or equal to one-fourth of daily trading volume, in shares by ETF to follow.
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Seyffart gives notice to MicroStrategy
Although both analysts have a bullish vision for the company, it comes with a notice. The inclusion of a company’s stock in the index could be challenging due to a lack of generated profit.
However, last year the Financial Accounting Standard Board (FASB) released its first accounting rule, which included crypto reporting for companies and using fair value measurement methods.
Meaning that crypto could be account as an asset class for the company, including Bitcoin.
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