MicroStrategy to Join Nasdaq-100 on December 23, 2024
The recent surge of Bitcoin (BTC) above $100K has positively impacted the stock market for companies holding Bitcoin, particularly MicroStrategy Inc (NASDAQ: MSTR). The U.S. recognizes Bitcoin as digital gold, attracting more institutional investors to use it as a hedge against inflation and fiat currency devaluation.
MicroStrategy's Dominance on Wall Street
MicroStrategy has accumulated approximately 439k Bitcoins, making it the largest corporate holder, representing over 2 percent of total circulating supply. Consequently, MSTR stock has increased by over 546 percent year-to-date, trading at about $411. This momentum is expected to continue as Bitcoin enters a macro bull run.
The company's inclusion in the Nasdaq-100, effective December 23, 2024, is anticipated to enhance liquidity and support its Bitcoin strategy, according to analysts including Gautam Chhugani from Bernstein. Furthermore, this inclusion will automatically list MicroStrategy on the Invesco QQQ Trust ETF.
Benchmark Broker reports suggest that MicroStrategy may soon be included in the S&P 500 index, contingent upon reporting positive earnings for recent quarters, as noted by analyst Mark Palmer.
The long-term implications of MicroStrategy’s inclusion in major indices could parallel those of Tesla Inc (NASDAQ: TSLA).
Broader Implications
MicroStrategy founder Michael Saylor views Bitcoin as an economic backbone for the free world, advocating for a strategic BTC reserve. With a capped supply of 21 million, Bitcoin is recognized globally as a commodity with intrinsic value similar to gold.
The Bitcoin market is poised to potentially surpass gold, driven by nation-states’ interests. Additionally, U.S. spot BTC ETF issuers, notably BlackRock’s IBIT, are actively acquiring more Bitcoins, indicating a shift among institutional investors towards Bitcoin over fiat currencies.