- The Nasdaq trade has introduced its yearly reshuffling of the highest 100 largest non-financial firms by market capitalisation and can add MicroStrategy to the listing for the primary time.
- The expansion in MicroStrategy’s inventory worth, fueled by Bitcoin’s constructive efficiency, has ballooned its market worth, permitting it to qualify for inclusion.
- MicroStrategy’s inventory can be uncovered to passive funding alternatives by being included in Invesco’s QQQ and different ETFs that put money into the Nasdaq’s prime firms.
The Nasdaq 100 index tracks the 100 largest firms on the Nasdaq trade. The businesses included are often recipients of passive fund flows from standard ETFs.
With a market capitalisation of $97.94 billion, MicroStrategy is the fortieth largest firm on the Nasdaq trade, largely on account of its huge Bitcoin treasury. The corporate’s share worth has risen 505% for the reason that begin of the yr, ballooning its market capitalisation from roughly $15 billion on Jan. 2 2024 to its present worth.
MicroStrategy’s inventory rise
MicroStrategy’s great inventory worth run is pushed by its Bitcoin shopping for efforts, which have spanned from August 2020 to December 2024 and have reworked the corporate right into a quasi-Bitcoin ETF.
In whole, the corporate has spent $23.41 billion on Bitcoin at a median worth of $58,200 primarily by issuing debt notes. Its Bitcoin stash is price $42 billion at market costs on the time of publishing.
Extra publicity to buyers
MSTR’s inclusion within the NAS100 will expose it to extra buyers and funds that put money into the Nasdaq index. The most important fund that does that is Invesco’s QQQ belief with an AUM of $352 billion, however different funds holding billions of {dollars} additionally put money into the businesses within the NAS100, just like the iShares NASDAQ 100 UCITS ETF.
Nonetheless, it’s price noting that not all firms within the Nasdaq 100 carry equal weighting. For instance, Invesco’s QQQ ETF allocates roughly 53.1% of its portfolio to the highest 10 firms on the Nasdaq trade, whereas the rest is distributed among the many different 90 firms.
Nonetheless, 0.1% of a $352 billion pie remains to be important.
It’s not all constructive information
Whereas the Nasdaq’s annual rebalancing will embody MicroStrategy, the standards for firms’ inclusion within the index is the main supply of their market worth.
MicroStrategy stays a supplier of enterprise intelligence expertise and options, nevertheless, if a larger a part of its worth comes from its Bitcoin holdings, then it might be reclassified as a monetary firm and faraway from the Nasdaq 100.
Bitcoin trades at $102,800 as of publishing whereas Nasdaq’s rebalancing will take impact on Dec. 23.
