Originally published on: December 11, 2024
MicroStrategy, the software company turned Bitcoin hedge fund, is poised to crack the Nasdaq 100 stock index by December 23rd, as reported by Bloomberg Intelligence analyst Eric Balchunas in a recent post. This move will catapult MicroStrategy among the top 100 largest stocks by market capitalization on the Nasdaq, opening up the company to substantial institutional capital flows tracking the index.
With an expected weight of 0.47% in the Nasdaq 100, MicroStrategy is anticipated to become the 40th biggest holding, influencing the ETFs tracking the index valued at $550 billion. This development will also integrate MicroStrategy into Invesco QQQ Trust (QQQ), an ETF boasting approximately $322 billion in assets under management.
While MicroStrategy’s inclusion in the Nasdaq 100 is imminent, analyst Eric Balchunas predicts that the company may also join the S&P 500 in 2025, further solidifying its position in the global stock market.
Since initiating its Bitcoin treasury strategy in 2020 under the leadership of co-founder Michael Saylor, MicroStrategy has invested around $25 billion in Bitcoin, leading to unrealized profits surpassing $17 billion. Currently holding nearly 425,000 BTC valued at over $42 billion, MicroStrategy’s bold move into cryptocurrency has paid off significantly, with BTC’s price soaring past $100,000 per coin in December.
Surpassing a growth of 2,500% since 2020, MicroStrategy has outperformed most significant public companies, with its stock now trading at more than double the value of its Bitcoin treasury. Analysts suggest that this trend may continue as MicroStrategy doubles down on Bitcoin acquisitions.
For more insights on investment opportunities and market trends, subscribe to the Markets Outlook newsletter for exclusive updates every Monday. Stay informed to make informed decisions in the dynamic world of finance.
