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- MicroStrategy joins the Nasdaq-100, ranking 40th with a $102B market cap, replacing Illumina, Moderna, and Super Micro.
- MicroStrategy set to attract $2.1B in ETF inflows, boosting stock price and Bitcoin buying power.
- MicroStrategy holds 423,650 Bitcoin worth $42B, aiming to grow holdings over the next three years.
MicroStrategy, Palantir Technologies, and Axon Enterprise are primed to join the Nasdaq-100 Index. Nasdaq implemented these changes before the market opened on December 23, during its annual reconstitution process. These companies will replace Illumina, Super Micro Computer, and Moderna and introduce shifts to the composition of the Nasdaq’s tech-focused gauge.
As of December 13, MicroStrategy, a business intelligence firm, ranked 40th on the Nasdaq-100 with an estimated value of $102 billion. The company holds a massive amount of Bitcoin and is expected to bring financial and strategic value.
ETF Inflows Expected to Boost MicroStrategy’s Stock Performance
MicroStrategy’s inclusion in the Nasdaq-100 is expected to lead heavy inflows of capital from ETFs investing in this index. Bloomberg ETF analyst Eric Balchunas forecasts that ETFs holding about USD 451 billion will funnel approximately USD 2.1 billion to the firm.
This estimate does not include other possible sources, which are, in turn, other accounts, including separately managed, active strategies. As a result, the actual aggregate could be higher. Looking at past performance, previous Nasdaq-100 stocks see a rise in demand and price. According to analysts at Bernstein, MicroStrategy’s share price might even go up to $600 due to this expected spike in investment.
This weighting equates to about $2.1b of buying via all the ETFs that track the index which have $451b collectively. We did not include SMAs or CITs or any active strategies so it could be a little more when all is said and done. @JSeyff
— Eric Balchunas (@EricBalchunas) December 14, 2024
Increased capital will enhance MicroStrategy’s recognition in traditional financial services and cryptocurrency markets, establishing it as a more competitive player.
Inclusion to Strengthen MicroStrategy’s Bitcoin Acquisition Plans
MicroStrategy’s membership in the Nasdaq-100 boosts its Bitcoin buying plan. The firm currently owns more than 423,650 bitcoins, equivalent to about $42 billion. With more substantial stock prices and capital inflows, MicroStrategy will have more fiscal freedom to achieve its objectives of acquiring $42 billion worth of Bitcoin in the next three years.
This firm, led by Michael Saylor, has become one of the biggest in the Bitcoin market. It often acts as an agent for Bitcoin investments.
The announcement boosted Bitcoin price, setting it above $102,000, proving that the market has reacted positively to the news. This development highlights the increasing adoption of digital assets into regular financial systems.