MicroStrategy Joins Nasdaq 100; Bitcoin Standard ETF Proposed
Holiday celebrations occurred recently, but the week was notably marked by MicroStrategy's inclusion in the Nasdaq 100.
Despite expectations for a short-term stock price increase, MSTR's share price fell by 22% as of 1 pm ET on December 16, following news of its index inclusion. Contributing factors include end-of-year profit-taking and declines in BTC price, with MSTR having risen approximately 380% in 2024.
The significance of MSTR's inclusion lies in the substantial funds that allocate to Nasdaq 100 constituents, particularly Invesco’s QQQ ETF, which manages $325 billion in assets. Dan Weiskopf, co-portfolio manager of Amplify’s BLOK ETF, emphasized this as an example of institutional adoption and Michael Saylor's strategy.
Looking ahead to 2025, analysts speculate about MSTR potentially entering the S&P 500, which has a larger asset base of $636 billion. While Weiskopf regards this as a "reach," he believes it is inevitable.
According to Benchmark's Mark Palmer, MSTR meets the minimum market cap and trading volume requirements but must report positive earnings for the recent quarter and cumulatively for the last four quarters. MSTR's plan to adopt new FASB guidance on BTC accounting could enable it to report positive earnings as early as Q1.
A trend of companies holding BTC as a treasury asset is evident, highlighted by Bitwise's proposal for a Bitcoin Standard Corporations ETF targeting firms with market caps above $100 million that hold at least 1,000 BTC. MSTR qualifies with 444,262 BTC, along with larger bitcoin miners like Marathon Digital (44,394 BTC), Hut 8 (10,096 BTC), Riot Platforms (17,429 BTC), and CleanSpark (9,297 BTC).
Additionally, Metaplanet announced a purchase of approximately 620 BTC, increasing its total holdings to about 1,762 BTC. KULR Technology Group also initiated a buy of 217 BTC.