MicroStrategy Joins the Nasdaq-100 Following Bitcoin-Driven Stock Surge

Nasdaq has announced that MicroStrategy will be included in the tech-heavy Nasdaq-100 Index, effective from market open on December 23rd. This move follows a significant surge in the company's stock, driven by its aggressive investment in Bitcoin.

MicroStrategy, which began purchasing Bitcoin in 2020, now holds approximately 423,650 bitcoins, valued at around $42.43 billion based on recent market prices. This strategic investment has not only protected the value of its reserve assets but also enhanced the appeal of its stock, which often mirrors Bitcoin's performance.

The inclusion in the Nasdaq-100 is expected to further boost MicroStrategy's stock prices, as exchange-traded funds aiming to replicate the index's performance will now need to purchase shares of the company. Analysts predict that this move could pave the way for MicroStrategy's inclusion in the S&P 500 by 2025, further enhancing its market visibility and recognition.

Bernstein analysts anticipate continued improvement in MicroStrategy's prospects, noting that the Nasdaq-100 inclusion will likely bring "more visibility and recognition beyond fresh ETF inflows." The recent rally in Bitcoin, driven by hopes of eased regulatory barriers under the new U.S. administration, has also contributed to the positive outlook for both MicroStrategy and the broader cryptocurrency sector.