MicroStrategy Poised for Nasdaq 100 Entry: Momentum Builds for Bitcoin Pioneer

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As a seasoned analyst with over two decades of experience under my belt, I must say that MicroStrategy’s strategic move into Bitcoin has caught my attention. The company’s relentless pursuit of Bitcoin acquisitions and its potential inclusion in the Nasdaq 100 index by December 23 is nothing short of impressive.

MicroStrategy continues to be the corporate entity with the greatest amount of Bitcoin ($100,811 BTC), and experts believe it may soon join the Nasdaq 100 index by December 23 due to its ongoing Bitcoin acquisition strategy. This prediction stems from analysts at Bernstein, who anticipate MicroStrategy will continue to purchase more Bitcoin before the Trump administration takes full control in January.

Should these forecasts prove accurate, the growth could substantially increase the stock’s trading activity and exposure, potentially drawing in massive investment sums from Exchange-Traded Funds (ETFs), amounting to billions of dollars.

Nasdaq 100 Inclusion: A New Terrain for MicroStrategy

Based on James Seyffart’s analysis from Bloomberg, if MicroStrategy joins the Nasdaq 100, it might lead to ETFs purchasing at least $2.1 billion. Eric Balchunas, another analyst, agrees with this perspective. However, he noted that it is Moderna that may be displaced from the index to accommodate MicroStrategy, which is projected to have a 0.47% weighting by that time.

As a researcher, I am excited about the prospect of MicroStrategy potentially being integrated into significant Exchange Traded Funds (ETFs), specifically the QQQ, which is currently the fifth-largest ETF globally. According to Bernstein analysts, this inclusion would not only spark one-time purchases but also augment the continuous inflows we are already witnessing at present.

Bitcoin Investments to Continue at Full Throttle Opening Room for More Potentials

MicroStrategy has been quite bold in its strategy for purchasing Bitcoin, as evidenced by the fact that over the past 40 days, it has accumulated approximately $16 billion in Bitcoin, raising its total holdings to around $40 billion.

Even though it currently trades at double its Bitcoin net asset value, analysts from Bernstein, headed by Gautam Chhugani, foresee a reduction in this valuation as they plan to purchase more Bitcoin.

Currently, the company is spending $15 billion out of its planned $42 billion fundraising on acquisitions, while it continues to purchase Bitcoins within the price range of approximately $95,000 to $100,000.

Analysts believe that MicroStrategy will likely continue its existing purchasing trend, driven by its low debt levels and potential to raise more funds through issuing new debt or shares.

As an analyst, I’m optimistic about the potential benefits MicroStrategy might reap following its inclusion in the Nasdaq 100. The increased visibility that comes with being part of this prestigious index could significantly boost the company’s profile. Furthermore, if MicroStrategy manages to secure a spot in the S&P 500 by 2025, as it aims to do, the recognition and opportunities that would follow could be substantial.

Although the firm’s software division isn’t currently generating a profit, potential adjustments to accounting standards for Bitcoin evaluations in the near future might enhance its qualification status for profits next year.

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2024-12-11 18:36