MicroStrategy expected to join Nasdaq 100 this month

Bloomberg Intelligence has indicated that MicroStrategy’s stock, MSTR, is anticipated to be included in the Nasdaq 100 index on December 23, with an announcement expected as soon as this week.

Eric Balchunas, a Bloomberg Intelligence analyst, shared this information on the social media platform X.

The inclusion of MicroStrategy will position the company among the top 100 stocks on the Nasdaq by market capitalization.

This move is significant as it will open up MSTR to substantial institutional capital flows, estimated to be in the hundreds of billions of dollars, from funds that track this prominent index.

Balchunas noted that MicroStrategy is likely to have a weight of approximately 0.47%, making it the 40th largest holding in the index.

He mentioned that there are about $550 billion in exchange-traded funds (ETFs) that follow the Nasdaq 100.

For example, MSTR’s addition will mean it becomes part of the Invesco QQQ Trust (QQQ), an ETF managing around $322 billion in assets.

Balchunas also suggested that Moderna might be removed from the index to accommodate MicroStrategy’s entry.

In addition to its Nasdaq 100 inclusion, Balchunas projected that MicroStrategy could join the SP 500 by 2025.

MicroStrategy has gained attention for its aggressive Bitcoin acquisition strategy, having invested around $25 billion in Bitcoin since 2020 under co-founder Michael Saylor's leadership.

This strategy has resulted in over $17 billion in unrealized profits, with the company currently holding nearly 425,000 BTC valued at more than $42 billion.

As Bitcoin's price continues to rise, breaking the $100,000 mark in December, MicroStrategy's stock has surged approximately 2,500% since 2020, outperforming most major public companies except Nvidia. 

Analysts believe that MSTR could see further gains as the company continues its Bitcoin purchasing strategy.