MicroStrategy’s MSTR Soars Ahead of Nasdaq 100 Listing

One of last week’s most talked-about topics was that the business intelligence firm MicroStrategy would be included in the Nasdaq 100 Index.

Even though the listing is scheduled for next week, MSTR’s valuation soared by as much as 6% on December 16th. Interestingly, the price surge coincided with BTC’s new price high of over $106,000.

MSTR Soars

Many in the financial industry consider MicroStrategy’s addition to the Nasdaq 100 a big deal. The Nasdaq 100 Index (QQQ) features the top 100 non-financial companies, including industry leaders like Apple, Microsoft, Meta, and Tesla.

Nasdaq annually replaces poor-performing companies with those with the best performance in the Nasdaq Composite Index. On November 29th, Nasdaq took a snapshot ahead of its annual reconstitution. MicroStrategy, a Nasdaq-listed public company, had a market valuation of about $92 billion at the time. This valuation would position the business intelligence firm as the 40th largest in the Nasdaq 100 Index. Two other companies will join MicroStrategy, while three firms currently on the Nasdaq 100 Index will be removed on December 23rd.

MicroStrategy’s MSTR has seen meteoric growth this year, primarily fueled by the company’s Bitcoin-buying practice. Since the beginning of the year, MSTR has soared by about 550%. Notably, its value has increased by 3,200% since MicroStrategy began accumulating BTC over four years ago. In late November, MicroStrategy’s shares peaked at $543. At the time of writing, MSTR traded above $408.

MicroStrategy continues its BTC acquisition spree. Earlier this month, it bought 21,550 BTC, bringing its total BTC holdings to 423,650 BTC, valued at over $43.9 billion based on the current market price.

How Has This Affected BTC?

Like most crypto assets, Bitcoin benefits when institutional investors show interest in it. Years after MicroStrategy boldly adopted BTC as a reserve asset, other public companies began taking similar steps to accumulate the leading crypto asset. Among them are Metaplanet, Semler Scientific, Boyaa Interactive, and others. Others flock to the stocks of these companies to gain exposure to the apex cryptocurrency.

The bullish adoption has rubbed off on BTC’s price, as it recently unlocked a new all-time high (ATH). At the time of writing, the leading crypto asset sold for $103,700.