MicroStrategy, the prominent bitcoin-investing firm, has secured inclusion in the Nasdaq-100 Index, Nasdaq announced on Friday. This achievement follows a meteoric rise in the company’s stock price, driven largely by its aggressive bitcoin investment strategy. The change will take effect before the market opens on December 23, positioning MicroStrategy among the most notable companies on the exchange.
Inclusion in the Nasdaq-100 often boosts a company’s stock value, as exchange-traded funds (ETFs) and institutional investors tracking the index are required to buy shares of newly added firms. MicroStrategy joins data analytics company Palantir Technologies and Taser manufacturer Axon Enterprise as new additions to the index. Meanwhile, companies like Illumina, Super Micro Computer, and Moderna will be removed, Nasdaq confirmed.
MicroStrategy’s stock has soared more than sixfold in 2024, propelling its market capitalization to nearly $94 billion. This surge is largely attributed to its status as the largest corporate holder of bitcoin, a strategy that has attracted significant investor interest.
The company’s pivot to bitcoin began in 2020, as revenues from its software business stagnated. By converting a significant portion of its reserves into bitcoin, MicroStrategy sought to hedge against inflation and currency devaluation. As of December 8, the company held approximately 423,650 bitcoins, purchased at an average price of $25.6 billion. Based on recent bitcoin valuations, this investment is now worth approximately $42.43 billion.
MicroStrategy’s decision to invest in bitcoin has transformed its stock into a proxy for the cryptocurrency’s performance. Analysts believe this alignment with bitcoin’s price movements has heightened the appeal of MicroStrategy shares among both crypto enthusiasts and institutional investors.
With MicroStrategy now part of the Nasdaq-100, analysts at Bernstein anticipate that the company could target inclusion in the S&P 500 by 2025. The brokerage expects the Nasdaq-100 milestone to provide “greater visibility and recognition” for the firm, particularly as ETFs increase inflows.
Bernstein analysts also foresee a strong 2025 for MicroStrategy, as the company’s strategy and the ongoing rally in bitcoin further solidify its market position. They noted that management shows no signs of scaling back its bitcoin purchases, with the company reportedly comfortable buying the cryptocurrency in the $95,000 to $100,000 range.
MicroStrategy’s deep integration with bitcoin has positioned it as a leader in the corporate crypto space, and its inclusion in the Nasdaq-100 highlights the growing intersection of traditional finance and digital assets. As the company continues to double down on its bitcoin strategy, its stock remains a key barometer for the cryptocurrency’s future trajectory.