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MicroStrategy has qualified to join the Nasdaq-1o0 Index following a series of sizeable Bitcoin purchases.
The inclusion will occur on 23 December, ahead of market opening, and is expected to bolster the firm's stock value as the ETFs tracking the index will acquire MicroStrategy shares to mirror its performance.
With MicroStrategy being added to the index, analysts are expecting the firm's stock performance to continue strengthening.
"MicroStrategy's inclusion in the Nasdaq-100 is expected to deliver a ~1% price boost from index fund buying, while also amplifying its spotlight and credibility as a top performer, thanks to its leveraged Bitcoin strategy," explained BRN analyst Valentin Fournier.
Year-to-date, MicroStrategy's stock price is up almost 500%, even outperforming Bitcoin's 140% surge as it continues to break new highs.
Nonetheless, MicroStrategy's strength has largely come from its consistent Bitcoin investments. The firm initially pivoted to Bitcoin in 2020 as a way to preserve the value of its reserve assets. It has since positioned MicroStrategy as the largest corporate holder of Bitcoin.
As of December 8, MicroStrategy holds about 423,650 BTC, purchased at a cost of $25.6 billion. With Bitcoin recently surpassing $100,000, this investment is now valued at approximately $42.43 billion.
In a post on December 15, MicroStrategy CEO Michael Saylor hinted at the firm's first Bitcoin purchase above the $100K mark, asking his followers whether MicroStrategy’s Bitcoin portfolio tracker SaylorTracker was "missing a green dot."
Is https://t.co/Bx3917zMqi missing a green dot? pic.twitter.com/B3Zzd6M1uV
— Michael Saylor⚡️ (@saylor) December 15, 2024
MicroStrategy's most recent purchase was announced last week, with the firm acquiring 21,550 BTC for around $2.1 billion.
According to a US Securities and Exchange Commission (SEC) filing, MicroStrategy acquired 21,550 tokens for an average price of approximately $98,783 from 2 to 8 December.
Blockhead
