MicroStrategy Prepares for Nasdaq 100 Entry

• MicroStrategy will join the Nasdaq 100 on December 23.
• Net purchases of US$2,1 billion in shares are expected.
• Bitcoin strategy boosts company valuation.

MicroStrategy (MSTR), known for its intense activity in the cryptocurrency market, is about to make a big leap. According to Eric Balchunas and James Seyffart, ETF analysts at Bloomberg, the company is expected to be included in the Nasdaq 100 (QQQ) by the end of December, specifically on the 23rd. This inclusion promises to be an important milestone, not only for MicroStrategy but also for the ETF market.

James Seyffart detailed that MicroStrategy’s entry into the index could catalyze approximately $2,1 billion worth of shares purchased by ETFs. “We expect a net purchase of at least $2,1 billion in shares by ETFs following inclusion, which represents about 20% of daily volume,” Seyffart explained. However, he notes that entry into the S&P 500 could be more challenging due to the company’s lack of profits, a situation that could change with a potential change in accounting rules on Bitcoin valuations by 2025.

$ MSTR is likely to be added to $ QQQ on 12/23 (w/ announcement coming 12/13). Moderna likely to get boot (symbolic). Below is best guess of adds/drops via @JSeyff . Likely at 0.47% weight (40th biggest holding). There's $550b of ETFs tracking the index. S&P 500 add next yr prob. pic.twitter.com/rmTavtvWQL

— Eric Balchunas (@EricBalchunas) December 10, 2024

MicroStrategy has already shown impressive performance this year, with its stock up about 450% year-to-date. This rally is driven by the company’s aggressive strategy to acquire Bitcoin, which has led its stock to reach a new all-time high — its first since March 10, 2000.

The official announcement of MicroStrategy’s inclusion on QQQ is expected to take place this Friday, December 13, according to Balchunas. “This is our best guess as to what will happen,” Balchunas said. “We are not on Nasdaq. FYI!”