Key Takeaways:
MicroStrategy Incorporated, led by Michael Saylor, has been officially included in the Nasdaq 100 stock index.
That will be accompanied by huge inflows of cash from ETFs into MSTR, therefore pushing the stock price upwards.
The momentum in this milestone is a good omen for Bitcoin, signaling wide acceptance in the market.
You probably know Michael Saylor, one of the most vocal Bitcoin ambassadors. Well, his company, MicroStrategy (MSTR), has just made headlines by being officially added to the Nasdaq 100—one of the most prestigious stock indices in the world. This is not only a success for MicroStrategy but also a very important milestone for Bitcoin and financial markets.
MicroStrategy Rises to NASDAQ 100
On December 13, 2024, Nasdaq announced new companies joining the Nasdaq 100 index. MicroStrategy came up as a high riser on the list, taking the place of such tech behemoths as Palantir Technologies Inc. (PLTR) and Axon Enterprise, Inc. (AXON). In fact, the addition of this company had meant the removal of three from the index, namely Illumina, Inc. (ILMN), Super Micro Computer, Inc. (SMCI), and Moderna, Inc. (MRNA).
What does this mean?
In simple terms, the Nasdaq 100 is just the 100 largest non-financial companies listed on the Nasdaq exchange. Therefore, inclusion in this list just means that MicroStrategy has finally become one of the largest market-cap companies on Nasdaq.
MicroStrategy’s Rise with Bitcoin
A full-fledged Bitcoin investment vehicle from an otherwise software company, 2020 saw MicroStrategy flip into one of the largest Bitcoin holders in the world, as Michael Saylor poured capital into it once revenues from its software segment began falling. At the time of recording, December 8, 2024, the company holds roughly 423,650 Bitcoin, valued at close to $42.4 billion—a number that is actually incredible.
The Surge of MSTR Stock:
The decision to invest in Bitcoin sent MSTR’s stock high flying. Its stock has surged more than sixfold this year, forcing the market capitalization of MicroStrategy to approach nearly $94 billion. This explosive growth earned it a place in the Nasdaq 100.
The Surge of MicroStrategy Stock
More News: Microstrategy Borrows $205 Million To Purchase More Bitcoin
Impact on the Financial Markets
ETF Cash Flows:
This carries a lot of implications because by joining the Nasdaq 100, MicroStrategy opens up the potential for massive inflows from Exchange-Traded Funds tracking the index. These funds would typically buy shares in the companies within the index in an effort to mirror their portfolio to that of the index. QQQ Trust alone manages around $322 billion in assets.
The Domino Effect:
In a sense, according to Jeff Park, an analyst at Bitwise Invest, MicroStrategy’s inclusion into the Nasdaq 100 could be “the trade of the decade.” What this really means is that major pension funds, sovereign wealth funds, and individual retirement accounts around the world will indirectly get exposed to Bitcoin through MSTR.
Commentary:
In turn, this can be attributed to one of those historical moments of development that essentially took place within the crypto market. This just explains that Bitcoin is finding itself more and more into mainstream adoption in the financial world; and increasingly, it’s not solely looked upon as a “risk” investment but forms part of mainstream institutional portfolios slowly and surely. Felix Hartmann, founder of Hartmann Capital, went as far as to say that fund managers looking to keep pace with the Nasdaq may need to gain exposure to Bitcoin or MSTR.
Michael Saylor and His Vision for Bitcoin
Michael Saylor never seems to stop investing within his company, but does one step further by pursuing an active campaign of increasing the adoption of Bitcoin not just for his company but the many large corporations out there. Thus, recently, he gave another brief, three-minute overview presentation to Microsoft’s Board of Directors, arguing what would amount to nearly another $5 trillion in market cap in their stock price while he tries to get them to officially “all in” for Bitcoin. Microsoft can’t afford to miss it, he said. The next wave of tech. Bitcoin is that.
Summary Table
Factor
Details
Company
MicroStrategy (MSTR)
Event
Join the Nasdaq 100 index
Effective Date
December 23, 2024
Impact
Positive: ETF inflows attracted; greater institutional exposure to Bitcoin; increased Bitcoin adoption.
Expert Opinion
“The trade of the decade”
Bitcoin Holdings
~423,650 BTC (as of 12/8/2024)
Value of Bitcoin
Approximately $42.4 billion (on 12/8/2024)
Additional Insights
This is an event that has given birth to a number of interesting questions: will other big companies follow the example of MicroStrategy and start heavy investments in Bitcoin; can MicroStrategy continue with this impressive performance and position? Some analysts really believe that it is highly probable that MicroStrategy could be qualified as a financial company since its value comes mainly from Bitcoin and not because of its software operations. If that happens, the company’s time in the Nasdaq 100 might be short-lived. However, according to James Van Straten of CoinDesk, this could even increase pressure on other major funds, like the SPDR S&P 500 Trust (SPY), to consider buying MSTR shares to stay competitive.
Conclusion
This is a huge win for the Bitcoin believers, as MicroStrategy finally made it into the Nasdaq 100. That not only justifies Michael Saylor’s far-ahead-of-its-time strategy but also marks one of the key points in Bitcoin’s roadmap to becoming a mainstream investible asset. With such inclusions into major ETF portfolios, MSTR stock will likely continue gaining even more momentum, which shall keep pulling Bitcoin and the greater crypto market upwards. However, investors should consider the market trend carefully to decide upon their investment in the company.
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