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Michael Saylor, president and CEO of MicroStrategy, speaks at the Bitcoin 2022 conference in Miami on April 7, 2022.
Eva Marie Uzcategui Bloomberg | Getty Images
shares of Microstrategy were higher on Monday after the Nasdaq It announced that the Bitcoin proxy will join the Nasdaq-100 technology index.
Shares were last down more than 5% in premarket trading.
Nasdaq balances its own Nasdaq-100 index annually. Companies flagged for inclusion are mostly based on market cap rankings on the last trading day in November. The shares must also meet the liquidity requirement and have a certain number of free-floating shares.
The index’s inclusion on December 23 follows MicroStrategy’s dramatic rise this year. In 2024, the stock is up 547%, more than far S&P 500 A 26.9% advance – as the price of bitcoin soars to an all-time high. Bitcoin last traded around $104,650, up more than 1% on the day.
MSTR interannual
MicroStrategy has been building up its bitcoin reserves for years, making it a proxy for the digital currency. The company currently has over 420,000 bitcoins.
It also means MicroStrategy will join the popular Invesco QQQ Trust ETF, which tracks the Nasdaq-100. This will likely lead to passive inflows into MicroStrategy stock, providing another boost.
“MSTR’s Bitcoin purchase program is unprecedented on the street, making it the largest corporate owner of Bitcoin (2% of supply, equivalent to $44 billion in market value),” Bernstein analyst Gautam Chhugani wrote Monday. “The entry into the Nasdaq100 further enhances MSTR’s market liquidity, further expanding its capital stock and Bitcoin purchase program.”
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