The Nasdaq Welcomes MicroStrategy to Top 100 List
Key Points:
- The Nasdaq exchange has added MicroStrategy to its top 100 list of non-financial companies based on market capitalization.
- MicroStrategy’s market value surge, fueled by Bitcoin’s performance, led to its inclusion in the list.
- MicroStrategy’s stock will now be part of passive investment opportunities through ETFs like Invesco’s QQQ.
About the Nasdaq 100 Index:
The Nasdaq 100 index tracks the 100 largest companies on the Nasdaq exchange. These companies are often included in popular ETFs, receiving passive fund flows.
MicroStrategy’s Market Cap and Stock Rise:
With a market capitalization of $97.94 billion, MicroStrategy is now the 40th largest company on the Nasdaq exchange, primarily due to its significant Bitcoin holdings. The company’s stock price has surged by 505% since the beginning of the year.
MicroStrategy’s Bitcoin Strategy:
MicroStrategy’s stock price growth is attributed to its extensive Bitcoin purchases, totaling $23.41 billion. This move has essentially turned the company into a Bitcoin-focused entity.
Increased Exposure to Investors:
Being part of the NAS100 will expose MicroStrategy to a wider investor base through funds like Invesco’s QQQ trust. Other major funds also invest in companies listed on the Nasdaq exchange.
Potential Concerns:
While MicroStrategy’s inclusion in the index is positive, there are concerns that its market value is heavily dependent on Bitcoin holdings. This could potentially lead to reclassification or removal from the Nasdaq 100.
As Bitcoin trades at $102,800, the Nasdaq’s rebalancing will come into effect on Dec. 23.
