Bitcoin Stock Surge Secures Microstrategy In The Nasdaq-100 Inclusion
MicroStrategy has officially secured inclusion in the Nasdaq-100 index. This was announced by Nasdaq on December 13, 2024. This change will be initiated before the market opens on December 23, 2024. The inclusion in the Nasdaq index increases the price of the stock. The price of MicroStrategy has increased sixfold times compared to the previous year due to the investment in Bitcoin by the company.
MicroStrategy is one of the largest financial firms in the index with a current market capitalization of the project is nearly 94 billion. The index inclusion usually results in a rise in the stock price, as the exchange-traded funds tracking the index buy shares of the newly added firm.
Palantir Technologies NASDAQ PLTR, Axon Enterprises NASDAQ AXON, and MicroStrategy have been added to the index. Illumina NASDAQ ILMIN, Super Micro Computer NASDAQ SMCI, and Moderna NASDAQ MRNA have been removed from the index.
MicroStrategy is a major Bitcoin investor, with the buying and holding of BTC in 2020 as a form of revenue for the establishment of its software business. MicroStrategy is currently the largest corporate holder of Bitcoin. As per analysts, the decision of the project to invest in Bitcoin has boosted its stock appeal. The value of the project correlates with the performance of Bitcoin.
As per the observation of analysts, the inclusion of MicroStrategy in the Nasdaq index can also result in its inclusion in the S P 500 by 2025. The future of the project seems to be in a better position during the coming years.
This can increase the visibility and recognition of the project. Since the election of Donald Trump in the U.S., Bitcoin has rallied on the upward momentum. The adoption of the regulatory framework by the Trump government is expected to surge the price of BTC further.
The government is planning to ease the regulatory framework for the better positioning of the project. BTC escalated to 100,000 for the first time earlier this month. MicroStrategy has around 423,650 Bitcoins. The current price of this is around 25.6 billion as of December 8. As per the returns calculation, the current price is around 42.43 billion based on the previous close of Bitcoin.
The Nasdaq-100 index includesthe 100 largest non-financial companies. The companies listed include technological firms, retail ans healthcare sectors. The addition of MicroStrategy is a notable entry as it has become a key player within the index.
The stock is now expected to attract billions as a passive investment flow. The mission of the company is to make enterprises more intelligent. Its addition to the reputed Nasdaq-100 index should increase the demand for its stocks.
Every year Nasdaq-100 changes its index every year. The selection of the companies in the index is based on the market capitalization ranking on November 29, the last day of trading. The eligibility requirements should also be fulfilled by the stocks for inclusion.
MicroStrategy has been accumulating Bitcoin since 2020 under the leadership of its CEO Michael Saylor. The previous year, the Nasdaq-100 added six companies during the annual updation. Five out of the six stocks saw an average increase of 1.21 the Monday after the announcement.
