🚨 MicroStrategy to Enter Nasdaq 100, Exposing Bitcoin-Linked Stock to Billions in Passive Investment Flows
MicroStrategy (MSTR) is set to join the Nasdaq-100 Index, becoming the first bitcoin-focused company to achieve this milestone. The Nasdaq-100 tracks the 100 largest non-financial companies on the Nasdaq exchange, which includes major players like Apple, Nvidia, and Amazon.
Following the announcement, bitcoin's price rose modestly, surpassing $102,000. As of November 29, MicroStrategy had a market cap of approximately $92 billion, positioning it as the 40th largest company in the Nasdaq 100, with an expected weighting of 0.47%. This inclusion will significantly increase the Nasdaq 100's exposure to bitcoin, as MicroStrategy holds about $42 billion in bitcoin assets. ETFs tracking the Nasdaq 100 have over $550 billion in assets, with Invesco's QQQ Trust being the largest at more than $300 billion.
Analysts suggest that this development could be among the top stories of 2024, especially as passive investment funds will likely increase their holdings in MicroStrategy. However, there are concerns that the company's inclusion may be temporary, as it could be reclassified as a financial firm due to its reliance on bitcoin for value. The Nasdaq 100 rebalancing, which includes this change, will take effect on December 23.
