✨ Nasdaq 100 Adds MicroStrategy (MSTR): What to Expect
posted 14 hr ago
MicroStrategy, the largest corporate holder of Bitcoin, is included in the Nasdaq-100 stock market index, set to take effect on December 23.
MSTR, the stock of the business intelligence and analytics platform, has surged by 547% in 2024. The company started buying Bitcoin in 2020, and currently holds around 439,000 coins worth more than $45 billion.
MicroStrategy’s shares are significantly impacted by Bitcoin's price, which reached new highs, surpassing the $100,000 mark earlier this month. The software company's growth led to its inclusion in the Nasdaq-100 index, which consists of 100 of the largest companies across various industries, including tech and healthcare.
Because MicroStrategy is now part of the Nasdaq-100, it will also be included in the popular Invesco QQQ Trust ETF, which tracks the Nasdaq-100. This could lead to more people buying MicroStrategy stock automatically through the ETF, which might push the stock price higher.
Following the news, MicroStrategy went up by around 5%, trading at $436. However, it saw a correction after early gains and trades at around $409 at the time of writing.
Bitcoin also saw a large price increase in the last 7 days and hit a new all-time high of $107,780 on December 16.
What’s Next for MicroStrategy (MSTR)?
After being added to Nasdaq, MicroStrategy now eyes the S&P 500, which tracks 500 of the largest publicly traded companies in the US. In a note to clients, Benchmark equity analyst Mark Palmer said while the Nasdaq-100 inclusion represents a near-term opportunity for MSTR, its potential addition to the S&P 500 is an even bigger one in the medium term.
According to an article by CNBC, Bernstein analysts predicted that MicroStrategy’s prospects will continue to improve in 2025. Analyst Gautam Chhugani said:
MSTR’s Bitcoin buying program is unprecedented on street, and makes it the largest corporate owner of Bitcoin (2% of supply equivalent to $44Bn market value). Inclusion in Nasdaq100 further improves MSTR’s market liquidity, further expanding its capital flywheel and Bitcoin buying program
This will further increase Bitcoin adoption and advance its development.
Economist and trader Alex Krüger wrote on his X account that more people will buy MSTR and as a result, Michael Saylor will have more capital to buy Bitcoin, leading both Bitcoin and MSTR to go up.
However, we need to note that the upward momentum is not guaranteed as there are many factors that can influence both stock prices and Bitcoin's price, including market sentiment, global economic conditions, regulatory developments, and competition from other assets.
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