Key Takeaways
- MicroStrategy joined the Nasdaq-100 Index as part of its annual reconstitution.
- This allows index tracking funds like the Invesco QQQ Trust to gain exposure to MicroStrategy and its Bitcoin holdings.
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MicroStrategy (MSTR), along with Palantir Technologies (PLTR) and Axon Enterprise (AXON), were officially added to the Nasdaq-100 ahead of the market opening on December 23, according to data from Nasdaq. The three companies will replace Illumina (ILMN), Super Microcomputer (SMCI), and Moderna (MRNA).
As of the latest data, MSTR ranks 52nd, accounting for approximately 0.42% of the total market capitalization of all companies included in the index, according to data tracked by Slickcharts.
The addition comes as part of the annual reorganization of the Nasdaq-100. MicroStrategy, with a market capitalization of $88.6 billion, joins the index of the top 100 non-financial securities listed on the Nasdaq stock exchange, according to Yahoo Finance data.
Bloomberg ETF analyst James Seyffart previously predicted that the inclusion could lead to an influx of about $2.1 billion in buying activity in ETFs that track the Nasdaq-100.
The company’s stock price has soared about 476% this year, and the stock is gaining momentum along with the Bitcoin price fluctuations. MSTR stock hit an all-time high of about $473 on November 20, when Bitcoin was trading above $92,000.
Inclusion in the Nasdaq-100 requires an index tracking fund, including the Invesco QQQ Trust (QQQ), to purchase MicroStrategy stock. This gives QQQ investors indirect exposure to MicroStrategy and Bitcoin holdings.
MSTR stock surged 11.5% on Friday, closing at $364, according to Yahoo Finance. This offset a difficult week with a rebound across U.S. stock markets.
Global markets were shaken by a hawkish signal from the U.S. Federal Reserve. Bitcoin briefly fell below $93,000 on Friday before recovering above $96,000, according to TradingView.
Despite Friday’s gains, the major indices still ended the week well. The S&P 500 index was down about 2%, the Dow Jones Industrial Average was down about 2.3%, and the Nasdaq composite index was down about 1.8%.
According to a Nasdaq report, index inclusion typically leads to increased demand and increased valuations, especially in the short term, but the expected benefits are often priced in at the time of announcement rather than the actual date of inclusion.
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