In a significant development, Bitcoin proxy MicroStrategy has officially made its debut on the Nasdaq-100 index. Alongside MicroStrategy, Palantir PLTR and Axon Enterprise AXON have also joined the Nasdaq 100, replacing Illumina (ILMN), Super Micro (SMCI), and Moderna (MRNA). The reconstituted index is set to commence trading on Dec. 23, as per data from NASDAQ.
NASDAQ 100 Gains Indirect BTC Exposure
MicroStrategy entered the index at the 52nd position, representing approximately 0.42% of the total market capitalization of all companies in the Nasdaq 100. This move means that ETFs tracking the Nasdaq 100 will automatically include MicroStrategy in their holdings. For example, the Invesco QQQ ETF QQQ, a prominent tech-focused fund with $320 billion in assets, will now acquire shares of MicroStrategy, regardless of investor preferences.
The inclusion of MicroStrategy in the Nasdaq 100 not only signifies the increasing acceptance of cryptocurrency but also introduces new volatility to the index. This shift could have far-reaching implications for both public markets and the broader ETF sector, according to Nasdaq.
Bloomberg ETF analyst James Seyffart had previously predicted that MicroStrategy’s inclusion could lead to approximately $2.1 billion in buying activity from ETFs tracking the Nasdaq-100. Notably, MicroStrategy’s stock has surged by around 476% this year, closely following Bitcoin’s price movements. The stock hit a record high of approximately $473 on November 20, when Bitcoin was trading above $92,000.
MSTR Buys More BTC
In addition to its Nasdaq 100 debut, MicroStrategy has been consistently increasing its Bitcoin holdings for the seventh consecutive week. The company purchased 5,262 BTC for a total of $561 million in the week ending Dec. 22, bringing its total holdings to 444,262 BTC. These latest acquisitions were funded by share sales under MicroStrategy’s at-the-market program (ATM), with $7.08 billion remaining on the program. This news coincided with MicroStrategy’s addition to the Nasdaq 100 index.
Originally a software company, MicroStrategy underwent a significant pivot in 2020 under its founder, Michael Saylor, who has wholeheartedly embraced Bitcoin. The company’s continued accumulation of Bitcoin reflects its strong belief in the cryptocurrency’s future, with Bitcoin seeing a 120% increase in value this year due to growing adoption. Moreover, the announcement of President-elect Trump’s plans to establish a U.S. Bitcoin strategic reserve has further fueled optimism among crypto enthusiasts.