Nasdaq Announces Microstrategy’s Inclusion In Nasdaq-100, What’s Next?

MicroStrategy's Nasdaq-100 introduction whitethorn boost banal value, connecting scale investors to Bitcoin exposure.

Key Takeaways

• MicroStrategy, Palantir Technologies, and Axon Enterprise will subordinate nan Nasdaq-100 connected December 23.
• MicroStrategy's inclusion is expected to pull important buying activity from ETFs search nan Nasdaq-100.

The Nasdaq-100 Index will invited MicroStrategy, Palantir Technologies, and Axon Enterprise arsenic caller members earlier marketplace unfastened connected December 23, as announced by Nasdaq during its yearly reconstitution connected Friday.

The 3 companies will switch Illumina, Super Micro Computer, and Moderna successful nan yearly reconstitution of nan index, which comprises 100 of nan largest non-financial companies listed connected The Nasdaq Stock Market.

With a marketplace worth of $102 cardinal arsenic of December 13, MicroStrategy is group to rank 40th connected nan Nasdaq-100.

Entering nan Nasdaq-100, MicroStrategy stands to pull astir $2.1 cardinal from ETFs that straight way nan index, which collectively negociate astir $451 cardinal successful assets, Bloomberg ETF expert Eric Balchunas reiterated successful a station pursuing Nasdaq’s announcement.

He added that nan $2.1 cardinal buying estimate mightiness beryllium blimpish arsenic it excludes separately managed accounts, closed-end funds, and progressive strategies.

This influx of superior is projected to thrust up MicroStrategy’s banal value and heighten its marketplace visibility. Stocks typically spot a emergence successful value pursuing their inclusion successful nan Nasdaq-100.

Bernstein analysts task MicroStrategy shares could scope $600 pursuing its inclusion successful nan index, driven by nan anticipated superior inflow from index-tracking finance funds.

MicroStrategy’s fierce Bitcoin finance makes its banal a proxy for Bitcoin. In different words, owning MicroStrategy shares done an ETF offers investors indirect vulnerability to nan Bitcoin market.

Bitcoin was up somewhat pursuing Nasdaq’s announcement. It’s now trading supra $102,000 million, reflecting a 2.5% summation successful nan past 24 hours, per CoinGecko.