Michael Saylor, chairman and CEO of MicroStrategy, speaks in the course of the Bitcoin 2022 convention in Miami on April 7, 2022.
Eva Marie Uzcategui | Bloomberg | Getty Images
Shares of MicroStrategy had been increased Monday after Nasdaq introduced the bitcoin proxy will be a part of the tech-heavy Nasdaq-100 index.
The inventory final traded greater than 5% increased in premarket buying and selling.
Nasdaq rebalances its Nasdaq-100 index yearly. The firms flagged for inclusion are principally primarily based available on the market cap rankings as of the ultimate buying and selling day of November. The shares additionally want to satisfy liquidity requirement and have a sure variety of free floating shares.
The index inclusion, which takes impact Dec. 23, comes after MicroStrategy’s large surge this yr. In 2024, the inventory is up 547% — far outpacing the S&P 500’s 26.9% advance — as the value of bitcoin scales to all-time highs. Bitcoin final traded round $104,650, up greater than 1% on the day.
MSTR yr thus far
MicroStrategy has been constructing its bitcoin reserves for years, making it a proxy for the digital foreign money. The firm presently owns greater than 420,000 bitcoins.
The addition additionally means MicroStrategy will likely be included within the in style Invesco QQQ Trust ETF, which tracks the Nasdaq-100. This will seemingly result in passive inflows for MicroStrategy inventory, probably giving it one other enhance.
“MSTR’s Bitcoin shopping for program is unprecedented on road, and makes it the biggest company proprietor of Bitcoin (2% of provide equal to $44Bn market worth),” Bernstein analyst Gautam Chhugani wrote Monday. “Inclusion in Nasdaq100 additional improves MSTR’s market liquidity, additional increasing its capital flywheel and Bitcoin shopping for program.”
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