- MicroStrategy will be officially included in the Nasdaq-100 Index.
- The firm currently holds approximately 423,650 Bitcoins.
MicroStrategy Incorporated, the world’s largest corporate holder of Bitcoin, is to join the Nasdaq-100 Index. This will take effect before the market opens on December 23, 2024, as part of the index’s annual reconstitution.
Under the leadership of Executive Chairman Michael Saylor, MicroStrategy began its Bitcoin acquisition strategy in 2020 with an initial $425 million investment. Over the past four years, the firm has consistently increased its Bitcoin holdings.
Earlier this month, the company acquired 15,400 BTC to its holdings, spending $1.5 billion as the asset is nearing its all-time high. Currently, MicroStrategy holds approximately 423,650 Bitcoins, with BTC’s price surging above $100K, approximately valued at $44 billion.
Michael Saylor’s decision to focus on the Bitcoin acquisition strategy initially drew critics, labelling the move as risky. However, the company’s strong belief in Bitcoin has paid off, resulting in the addition, recognized as a benchmark in the market.
Moreover, Saylor expressed uncertainty earlier this week and stated that he is unsure if MicroStrategy will be included in the Nasdaq-100 index. Besides, he has emphasized the long-term advantage of MicroStrategy’s Bitcoin-focused approach.
The Impact on Nasdaq-100
MicroStrategy’s addition to the Nasdaq-100 could increase the index’s Bitcoin exposure indirectly. It also offers millions of investors access to the cryptocurrency market through traditional equity investments.
Following this, MicroStrategy’s stock has surged to over $400 per share, while Bitcoin’s price crossed the $102,000 mark in the early hours. Market analysts predict further gains for Microstrategy as ETFs and other institutional investors purchase shares.
On the other hand, the annual reconstitution of the Nasdaq-100 adds two other companies, except Microstrategy. It includes Palantir Technologies Inc. and Axon Enterprise, Inc. Conversely, Illumina, Inc., Super Micro Computer, Inc., and Moderna, Inc. will be removed from the index.
The Nasdaq-100 Index tracks the largest non-financial companies listed on the Nasdaq exchange, including global giants such as Apple, Tesla, Microsoft, and Amazon.
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