MicroStrategy, a leading company in the world of cryptocurrency, has recently made headlines after being announced as a new addition to the Nasdaq-100 index. This move has caused a surge in the company’s stock price, with shares rising by more than 3% following the news.
Nasdaq rebalances its Nasdaq-100 index annually, with companies being chosen based on market cap rankings as of the final trading day of November. In order to be included in the index, stocks must also meet liquidity requirements and have a certain number of free floating shares. MicroStrategy’s inclusion in the index will take effect on December 23, marking a significant milestone for the company.
This announcement comes on the heels of MicroStrategy’s impressive performance this year, with the stock soaring by 547%. This growth has outpaced the S&P 500’s 26.9% advance, fueled by the rising price of bitcoin, which is currently trading around $103,806.69.
In addition to being added to the Nasdaq-100 index, MicroStrategy will also be included in the popular Invesco QQQ Trust ETF, which tracks the performance of the Nasdaq-100. This move is expected to attract passive inflows into MicroStrategy stock, providing a further boost to its value.
Founder and CEO of MicroStrategy, Michael Saylor, announced on social media that the company has purchased an additional 15,350 BTC for approximately $1.5 billion. This brings MicroStrategy’s total bitcoin holdings to 439,000, solidifying its position as a major player in the world of cryptocurrency.
Analysts have praised MicroStrategy’s aggressive bitcoin buying program, with Bernstein analyst Gautam Chhugani noting that the company is now the largest corporate owner of bitcoin, equivalent to 2% of the total supply. The inclusion in the Nasdaq-100 index is expected to improve MicroStrategy’s market liquidity and further enhance its capital flywheel.
Overall, MicroStrategy’s recent achievements highlight the company’s commitment to embracing the digital currency revolution. With its strategic investments in bitcoin and its inclusion in key market indices, MicroStrategy is poised for continued growth and success in the evolving world of cryptocurrency.
