MicroStrategy Joins The Nasdaq-100 And Shines A Light On Bitcoin

MicroStrategy, the company led by Michael Saylor, will soon be included in the Nasdaq-100, an index that tracks the 100 largest non-financial companies listed on the Nasdaq. This inclusion is a major milestone for MicroStrategy as it will significantly increase the Nasdaq-100’s exposure to Bitcoin (BTC), of which MicroStrategy holds approximately 42 billion dollars.

MicroStrategy joins the Nasdaq-100, exposing Bitcoin to billions of dollars

The addition of MicroStrategy to the Nasdaq-100 means that exchange-traded funds (ETF) that track this index, representing over 550 billion dollars in assets under management, will automatically become buyers of MSTR stock. The largest of these ETFs, the Invesco QQQ Trust, manages over 300 billion dollars in assets. This dynamic could lead to a significant increase in demand for MicroStrategy shares, which have already seen a spectacular rise this year.

The inclusion of MicroStrategy in the Nasdaq-100 is seen as one of the most significant events of 2024, following the launch of spot ETFs in the United States. Analysts estimate that this inclusion could also prompt other major indices, like the SPDR S&P 500 Trust, to consider adding MicroStrategy to their portfolios. This would provide indirect exposure to Bitcoin for millions of additional investors, thereby enhancing the company’s leverage.

A short-lived adventure?

Some experts, however, warn of the possibility that MicroStrategy’s inclusion in the Nasdaq-100 may be short-lived. Indeed, the company could be reclassified as a financial institution next March, as its value comes almost entirely from its Bitcoin (BTC) holdings rather than from its operational activities. Michael Saylor even stated that he is considering transforming MicroStrategy into a “Bitcoin bank,” which would make it even less like a technology company.

In summary, MicroStrategy’s inclusion in the Nasdaq-100 represents a major opportunity for investors to gain exposure to Bitcoin through a traditional investment vehicle. However, it is crucial to monitor future developments regarding the company’s classification and its potential impact on its presence in the index.