MicroStrategy’s Inclusion in Nasdaq-100 Could Potentially Lead to Listing on S&P 500

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As a seasoned researcher with a penchant for following trends in the financial markets, I must say that the recent surge of Bitcoin above $100K has been nothing short of captivating. The story of MicroStrategy Inc (NASDAQ: MSTR) is particularly intriguing, as they have masterfully navigated the crypto landscape and are now poised to make significant inroads on Wall Street.

Over the past three weeks, Bitcoin’s price surpassing $100K has substantially boosted the stock market of companies that own Bitcoin on their financial records, with MicroStrategy Inc (NASDAQ: MSTR) leading the pack. Given that the U.S. views Bitcoin as a form of digital gold, there is growing anticipation among institutional investors to incorporate it into their portfolios as a safeguard against inflation and the ongoing devaluation of traditional fiat currencies worldwide.

MicroStrategy on a Path of Taking Over Wall Street

Over the past few years, MicroStrategy has amassed approximately 439 thousand Bitcoins, making it the corporation holding the most Bitcoins. This amount represents more than 2% of all Bitcoins currently in circulation. Notably, the value of MicroStrategy’s stock market has mirrored Bitcoin’s growth over the past two years.

Based on current market statistics, the Mastercard (MSTR) stock has skyrocketed over 546% so far this year, currently trading at approximately $411. Analysts predict that the company’s stock market will continue to surge as Bitcoin enters its accelerated phase during the broader bull trend.

The company’s achievement is strengthened even more by the recent news that it will be added to the Nasdaq-100 starting December 23, 2024. This inclusion, as suggested by Wall Street analysts such as Gautam Chhugani from Bernstein, could significantly enhance its accessibility to investors (liquidity), thereby facilitating the growth of its Bitcoin-related plans.

Additionally, adding MicroStrategy to the Nasdaq-100 index means it will be automatically included in the Invesco QQQ Trust Exchange Traded Fund (ETF).

As a crypto investor, I’ve been closely watching MicroStrategy’s potential inclusion in the prestigious S&P 500 index. According to Benchmark Broker’s latest report to clients, this could happen soon. However, it’s important to note that for MicroStrategy to make it onto the S&P 500, they need to demonstrate profitability by reporting positive earnings in their most recent quarters. This assessment comes from analysts at Benchmark, led by Mark Palmer. I’m keeping a close eye on this development and will update my investment strategy accordingly.

Furthermore, Palmer emphasized the accumulated profits made by the firm over the last four completed fiscal quarters.

Adding MicroStrategy to indices like the Nasdaq-100 and possibly the S&P 500 could bring about a substantial influence over time, perhaps mirroring the effect of Tesla Inc (NASDAQ: TSLA) in the long run.

Bigger Picture

As Michael Saylor, the founder of MicroStrategy, puts it, Bitcoin serves as the economic foundation for a free society, making it logical for strategic reserves to be maintained automatically. To add, Bitcoin, with its finite supply of 21 million units, is globally recognized as a commodity, much like gold, that possesses inherent value.

As a result, it’s likely that the Bitcoin market will surpass the gold market in the near future, with countries increasingly adopting it. Additionally, major players in US Bitcoin ETFs like BlackRock’s IBIT are actively buying Bitcoins, suggesting that institutional investors view Bitcoin as a more attractive investment than holding traditional currencies.

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2024-12-17 17:06