MicroStrategy $MSTR Poised to Be Listed on Nasdaq 100 Index: Bloomberg

According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, MicroStrategy stock (MSTR) is anticipated to enter the Nasdaq 100 Index (QQQ) later this month. The inclusion is expected to take place on December 23.

$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 via @JSeyff. Likely a 0.47% weight (40th biggest holding). There’s $550b of ETFs tracking the index. S&P 500 add next yr prob. pic.twitter.com/rmTavtvWQL

— Eric Balchunas (@EricBalchunas) December 10, 2024

MSTR Surges Over 450% YTD

Seyffart noted that MSTR’s entry into the Nasdaq 100 could prompt at least $2.1 billion in net buying by ETFs, equivalent to roughly 20% of its daily trading volume. However, while joining the S&P 500 might prove more challenging due to profitability issues, upcoming changes to Bitcoin (BTC) valuation accounting rules could make the company eligible for the index by 2025.

The anticipated boost comes as MicroStrategy’s stock has surged by over 450% this year, outperforming major equities and even Bitcoin. Recently, the company’s stock reached an all-time high, a milestone last achieved in March 2000. Interestingly, MSTR rose 3.3%, driven by speculation about its potential inclusion in the Nasdaq 100.

MicroStrategy co-founder Michael Saylor expressed optimism about the company’s growth as it prepares to join the Nasdaq 100 Index, suggesting that it could soon surpass Microsoft in market value.

“The question isn’t if we’ll surpass Microsoft’s market cap, it’s how fast,” he tweeted.

MicroStrategy Remains the Largest Corporate BTC Holder

MicroStrategy’s aggressive Bitcoin acquisition strategy has played a central role in its performance. As of December 8, the firm held 423,650 BTC, valued at approximately $41 billion based on current market prices. Notably, the company has acquired over 170,000 BTC after announcing plans in October to raise $42 billion for additional Bitcoin purchases.

Since 2020, MicroStrategy has maintained its position as the largest corporate Bitcoin holder. Initially, it adopted the cryptocurrency as a hedge against inflation. Over time, its focus shifted toward maximizing BTC accumulation. Saylor envisions Bitcoin becoming the world’s dominant financial asset, surpassing traditional currencies and commodities like gold.

Microstrategy’s Saylor has consistently argued that Bitcoin is the best-performing asset in today’s market. He believes its price volatility appeals to investors seeking high returns and sees it as a key asset for retail and institutional portfolios. He also clarified that the company has no plans to lend out its Bitcoin holdings, emphasizing that borrowing to invest in BTC is less risky than lending to individuals, companies, or governments.