MicroStrategy Chairman and CEO Michael Saylor speaks at the Bitcoin 2022 conference in Miami on April 7, 2022.
Eva Marie Uzcategui | Bloomberg | Getty Images
MicroStrategy shares rose on Monday after Nasdaq announced the bitcoin agency would join the tech-heavy Nasdaq 100 index.
The stock rose more than 5% in recent pre-market trading.
Nasdaq rebalances the Nasdaq-100 Index annually. Most of the companies flagged for inclusion are based on market capitalization rankings as of the last trading day in November. The stock must also meet liquidity requirements and have a certain number of free float shares.
The index’s inclusion in the index took effect on December 23 and follows MicroStrategy’s strong stock price gains this year. In 2024, the stock is up 547%, far outpacing the S&P 500’s 26.9% rise as Bitcoin prices reach all-time highs. Bitcoin was last traded at around $104,650, up more than 1% on the day.
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MSTR Year to date
MicroStrategy has been building up Bitcoin reserves for years and using it as a proxy for the digital currency. The company currently holds over 420,000 Bitcoins.
The addition also means MicroStrategy will be included in the popular Invesco QQQ Trust ETF, which tracks the Nasdaq 100. This will likely lead to passive inflows into MicroStrategy stock, potentially pushing the stock price even higher.
“MSTR’s Bitcoin purchase program is unprecedented on the street, making the company the largest corporate owner of Bitcoin (2% of supply equates to a market value of $44 billion),” Bernstein said. analyst Gautam Chughani wrote on Monday. “Joining the Nasdaq 100 further increases MSTR’s market liquidity and further expands our capital flywheel and Bitcoin purchase program.”
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