Key takeaways
- MicroStrategy will join the Nasdaq 100 Index, with an official announcement expected on December 13.
- MicroStrategy’s Nasdaq 100 inclusion could drive $2.1 billion in ETF share purchases.
MicroStrategy is expected to join the Nasdaq 100 index on December 23rd, with an official announcement scheduled for Friday, December 13th.
According to Bloomberg ETF analyst James Seyffart, ETFs that track the Nasdaq 100 are expected to buy $2.1 billion worth of MicroStrategy shares, or about 20% of the company’s daily trading volume.
The company is also likely to have a weight of 0.47% in the Nasdaq 100 and become the 40th largest holding in the index, according to to ETF analyst Eric Balchunas.
Seyffart suggested that while joining the Nasdaq 100 is imminent, inclusion in the S&P 500 will be more challenging because of MicroStrategy’s lack of profitability.
However, an upcoming change in accounting rules related to Bitcoin valuations could potentially make the company eligible for the S&P 500 in 2025.
This development comes as MicroStrategy continues its aggressive Bitcoin acquisition strategy.
Just yesterday, the company announced the purchase of 21,550 BTC for $2.1 billion at an average price of $98,000 per Bitcoin.
With this latest addition, MicroStrategy’s total holdings have increased to 423,650 BTC, with an estimated valuation of $42 billion.
