Benchmark: MSTR's inclusion in the NASDAQ 100 may pave the way for its entry into the S&P 500 index

According to CoinDesk, brokerage firm Benchmark stated in a report on Monday that MicroStrategy (MSTR) being included in the Nasdaq-100 index is a big deal, but from a medium-term perspective, if it could be included in the U.S. S&P 500 index in the future, it might present an even greater opportunity. Earlier news reported that MicroStrategy would be included in the Nasdaq-100 index on December 23.

The report states that the company founded by Michael Saylor easily meets market value and trading volume requirements for inclusion into the S&P 500 index but currently does not meet two other criteria. The company needs to report positive earnings for its most recent quarter as well as "positive earnings summed over four consecutive quarters". However, MicroStrategy has indicated plans to adopt new guidelines from Financial Accounting Standards Board for Bitcoin held on its balance sheet starting from Q1 of 2025 which will "enable it to start reporting positive earnings immediately".

Bernstein said in a report on Monday that MicroStrategy became the first Bitcoin company to enter the Nasdaq-100 Index and will become the 40th largest company within this index with a weightage of 0.47%. For this stock, entering into Nasdaq-100 Index is an important milestone because Invesco QQQ Trust Series ETF - ranked fifth-largest by assets under management - along with many other companies will include it into their indices.