MicroStrategy, the company led by Michael Saylor, will soon be included in the Nasdaq-100, an index that tracks the 100 largest non-financial companies listed on the Nasdaq. This inclusion is a major milestone for MicroStrategy, as it will significantly increase the Nasdaq-100's exposure to Bitcoin (BTC), of which MicroStrategy holds approximately $42 billion.
MicroStrategy joins the Nasdaq-100, exposing bitcoin to billions of dollars
MicroStrategy's addition to the Nasdaq-100 means that exchange-traded funds (ETFs) that track that index, representing more than $550 billion in assets under management, will automatically become buyers of MSTR stock. The largest of these ETFs, the Invesco QQQ Trust, manages more than $300 billion in assets. This dynamic could lead to a significant increase in demand for MicroStrategy's shares, which have already seen a dramatic rise this year.
MicroStrategy's inclusion in the Nasdaq-100 is seen as one of the most important events of 2024, after the launch of spot ETFs in the United States. Analysts believe this inclusion could also prompt other major indexes, such as the SPDR S&P 500 Trust, to consider adding MicroStrategy to their portfolio. This would provide indirect exposure to bitcoin to millions of additional investors, increasing the company's leverage.
A short-term adventure?
However, some experts warn against the possibility that the inclusion of MicroStrategy in the Nasdaq-100 or short-term. Indeed, the company could be reclassified as a financial company next March, as its value comes almost entirely from its Bitcoin (BTC) holdings and not from its operational activities. Michael Saylor has even said he plans to turn MicroStrategy into a “Bitcoin bank,” which would make it even less like a tech company.
In sum, MicroStrategy's inclusion in the Nasdaq-100 represents a major opportunity for investors to benefit from exposure to bitcoin through a traditional investment vehicle. However, it is crucial to monitor future developments regarding the company's classification and its potential impact on its presence in the index.
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