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MicroStrategy will be added to the Nasdaq-100 Index, the exchange operator announced on Friday, following a dramatic rise in the company’s shares due to its aggressive investment in Bitcoin. This change is set to take effect before the market opens on December 23. Inclusion in the Nasdaq-100 typically boosts stock prices, as exchange-traded funds (ETFs) that track the index begin purchasing shares of newly included companies.
Alongside MicroStrategy, data analytics firm Palantir Technologies and Taser manufacturer Axon Enterprise will also be added to the Nasdaq-100 Index. Meanwhile, Illumina, Super Micro Computer, and vaccine maker Moderna will be removed from the index. MicroStrategy, known for its bold investments in Bitcoin, has seen its stock value surge more than sixfold this year, raising its market valuation to nearly $94 billion. The company first began buying and holding Bitcoin in 2020 as revenue from its software business started to decline. Today, it holds the largest Bitcoin reserves of any corporation.
Analysts have noted that MicroStrategy’s decision to invest in Bitcoin to safeguard its reserve assets has significantly boosted investor interest in its stock, which often mirrors Bitcoin’s performance. Bernstein analysts predict that after MicroStrategy’s inclusion in the Nasdaq-100, the next target for the company could be joining the S&P 500 by 2025. They also expect the company’s growth to continue into the next year, gaining more visibility and recognition beyond new ETF inflows.
In recent weeks, Bitcoin has seen a rally, especially following U.S. President-elect Donald Trump’s victory, which has boosted optimism in the crypto sector about regulatory easing. Earlier this month, Bitcoin crossed the $100,000 mark for the first time. “Management has shown no signs of slowing down Bitcoin purchases,” Bernstein analysts said, noting the company’s comfort in buying Bitcoin at prices between $95,000 and $100,000.
As of December 8, MicroStrategy held about 423,650 bitcoins, purchased for roughly $25.6 billion based on average purchase prices. With Bitcoin’s recent close, the investment is now worth approximately $42.43 billion, according to Reuters calculations.
