MicroStrategy Set for Nasdaq 100 Inclusion Amid Continued Bitcoin Acquisitions
MicroStrategy is the largest corporate holder of Bitcoin #BTC. Analysts predict that it could enter the Nasdaq 100 index by December 23, based on its ongoing Bitcoin acquisitions. Bernstein analysts expect the company to continue purchasing Bitcoin ahead of the Trump administration's full effect in January.
If these predictions are accurate, this development may significantly increase trading volume and visibility for MicroStrategy, attracting billions of dollars in investments from exchange-traded funds (ETFs).
Nasdaq 100 Inclusion: A New Terrain for MicroStrategy
Bloomberg analyst James Seyffart states that MicroStrategy's inclusion in the Nasdaq 100 could lead to at least $2.1 billion in net buying by ETFs. Analyst Eric Balchunas supports this theory but notes that Moderna is likely to lose its spot in the index, allowing MicroStrategy to hold a projected 0.47% weight.
This inclusion is expected to bring MicroStrategy into major ETFs like QQQ, the fifth-largest ETF globally. Bernstein analysts indicate that this would result in significant one-time buying and steady inflows.
Bitcoin Investments to Continue at Full Throttle Opening Room for More Potentials
MicroStrategy has aggressively accumulated Bitcoin, acquiring $16 billion worth in the last 40 days, totaling $40 billion. Despite trading at a 147% premium to its Bitcoin net asset value (NAV), Bernstein analysts led by Gautam Chhugani believe this valuation will normalize as the company continues to buy more Bitcoin.
The firm has utilized $15 billion of its planned $42 billion debt and equity raise for acquisitions, continuing purchases within the current Bitcoin price range of $95,000 to $100,000. Analysts expect MicroStrategy to maintain its buying momentum due to low leverage levels and the capacity to issue more debt or equity.
Bernstein also anticipates that MicroStrategy's Nasdaq 100 inclusion will enhance its recognition, particularly with a potential entry into the S&P 500 by 2025. Although the company's software business is currently unprofitable, upcoming accounting rule changes for Bitcoin valuations could improve its eligibility next year.