Software firm MicroStrategy has emerged as one of the companies to enter the Nasdaq 100 index, spurred by its stock’s impressive yearly performance.
MicroStrategy’s ploy to attract more capital for its incessant Bitcoin purchase has received a boost after the software firm emerged as a candidate to enter the Nasdaq 100 index.
Stock exchange operator Nasdaq announced on November 13 that MicroStrategy (MSTR) and two other firms will be the latest additions to the index fund.
The Nasdaq 100 index comprises 100 of the largest non-financial firms by market cap listed on the Nasdaq exchange market. Notably, Nasdaq reviews the funds’ components every year, shuffling participants based on market performance.
MicroStrategy Joins an Elite Group
The fund’s reconstruction will take effect on December 23, and MicroStrategy will join an elite group of non-financial companies.
Meanwhile, MicroStrategy’s inauguration into the Nasdaq 100 index automatically includes it in the Invesco QQQ, an exchange-traded fund managing $325 billion in assets boasting a larger reach to market investors.
With a broader market reach, MicroStrategy could leverage its growing relevance to penetrate more markets and raise capital to buy Bitcoin. Notably, the software development company has indiscriminately leveraged several debt vehicles from the fixed-income market to grow its Bitcoin exposure.
Meanwhile, firms are beginning to mimic the MicroStrategy playbook, with crypto miner Marathon Digital (MARA) and Japanese Metaplanet adopting the strategy. Furthermore, MicroStrategy’s growing Bitcoin exposure has spurred a sixfold stock upsurge year-to-date, contributing to its increasing market traction.
Short-Lived Listing?
MicroStrategy’s position in the Nasdaq 100 will be up for contention by the March 2025 reclassification event. The exchange will reevaluate the company’s benchmark on the said date due to its growing Bitcoin stash.
Data from the Saylor tracker shows that MicroStrategy holds $43 billion worth of Bitcoin, its latest 21,550 BTC acquisition occurring recently. As a result, MicroStrategy’s growing Bitcoin holdings and yield strategy could lead to its classification as a financial company and immediate removal from the Nasdaq 100 index.
In the meantime, MicroStrategy will maximize its entry into the fund and aggressively pursue its endgame. Moreover, MSTR reacted considerably to the development, up 2.21% to $410.88 after Friday’s market closing.
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