MicroStrategy’s shares surged on Monday after the company was included in the Nasdaq-100 index, a move that also made its bitcoin holdings more accessible to investors through the popular Invesco QQQ Trust ETF. The stock jumped as much as 7% earlier in the day before settling lower by less than 1%.
The Nasdaq-100 index is rebalanced annually and includes companies based on market cap rankings, liquidity requirements, and free-floating shares. MicroStrategy’s inclusion in the index takes effect on December 23 and follows a massive surge in the stock this year, with prices rising 547% in 2024, outpacing the S&P 500’s 26.9% gain. The company’s bitcoin holdings have been steadily growing, reaching 439,000 coins.
In addition to its inclusion in the Nasdaq-100 index, MicroStrategy will now be part of the Invesco QQQ Trust ETF, which tracks the Nasdaq-100. This move is expected to attract passive investors and further boost the stock’s value.
Founder Michael Saylor announced on social media that MicroStrategy has purchased an additional 15,350 bitcoin for approximately $1.5 billion. The company now holds a total of 439,000 coins, making it one of the largest corporate owners of Bitcoin.
Analysts have praised MicroStrategy’s bitcoin buying program as unprecedented and highlight its potential to improve market liquidity and expand the company’s capital flywheel.
Source: https://www.cnbc.com/2024/12/16/microstrategy-shares-jump-as-bitcoin-proxy-will-join-nasdaq-100-index-and-qqq-etf.html