As a seasoned crypto investor with a decade of market experience under my belt, I must admit that MicroStrategy’s inclusion in the Nasdaq-100 is nothing short of revolutionary. It’s like witnessing the underdog rising to prominence amidst giants like Apple and Microsoft.
In simpler terms, starting from December 23rd, MicroStrategy – the company with the most significant Bitcoin holdings – will now be included in the Nasdaq-100 index.
After a dynamic year, the company’s growth corresponds to a remarkable rise in its stock value, multiplying by over six times.
The Nasdaq-100 index is up 29.4% in 2024.
What does it mean?
MicroStrategy, the software company that now holds Bitcoin as part of its treasury, is now listed alongside major corporations such as Apple Inc., Microsoft Corporation, NVIDIA Corporation, Amazon.com Inc., and Alphabet Inc., all of which have market values exceeding significant thresholds: Apple with a market cap over $3 trillion, Microsoft at more than $2 trillion, NVIDIA surpassing $1 trillion, Amazon around $1.5 trillion, and Alphabet approaching $1.8 trillion.
Other newcomers to the index this year include Palantir Technologies and Axon Enterprise.
Adding companies often results in more shares being bought because Exchange-Traded Funds (ETFs), which follow an index, alter their assets to match these updates.
As an analyst, I can express this by saying: To qualify for inclusion in the prestigious Nasdaq-100 index, a company needs to meet stringent criteria and maintain a significant presence within the stock market. For MicroStrategy, it represents one of the top 100 non-financial entities listed on the Nasdaq exchange, ranked according to market capitalization.
Being part of an inclusion also implies that the company is highly regarded and needs to consistently deliver strong stock performance to remain included. A decline in performance or a reduction in market value may result in exclusion, as demonstrated this year by companies such as Illumina, Super Micro Computer, and Moderna.
MicroStrategy’s transformation
In 2020, the company started buying Bitcoins to hold as a reserve asset due to decreasing income from its software business. This approach has turned out to be highly effective, as the company’s total value in the stock market is quickly approaching a staggering $97.94 billion.
Recently, the company has increased its ownership of Bitcoins even more. Michael Saylor, the company’s Executive Chairman, revealed that they purchased an additional 21,550 Bitcoins for approximately $2.1 billion between December 2 and December 8. This addition now brings their total Bitcoin holdings to a substantial 423,650 coins.
According to Bernstein’s analysis, the company could be on track for inclusion in the S&P 500 by 2025 if it continues to meet Nasdaq-100 requirements, implying potential growth in the company’s share price.
Analysts expect that MicroStrategy’s stock will gain more prominence and recognition not just from new ETF investments, but also due to being included in broader indexes. Notably, MicroStrategy’s stock performance has mirrored Bitcoin’s price fluctuations, with the boost coming from Bitcoin’s recent price climb above $100,000.
The enthusiasm for this rally can be linked, in part, to the optimism sparked by Donald Trump’s election as President and the belief that he may bring more lenient regulations towards the cryptocurrency industry.
The company’s success has redefined corporate treasury management strategies, showcasing the potential benefits of Bitcoin as a reserve asset. MicroStrategy’s approach has lured attention from institutional investors and corporate treasurers.
This advancement signifies a significant step forward in the widespread recognition of Bitcoin-centric business tactics, as MicroStrategy now stands among a small number of firms with significant cryptocurrency holdings that have been included in a prominent stock market index.
Adding the company to the Nasdaq-100 signifies approval of its Bitcoin-focused business model, potentially inspiring other businesses to explore comparable tactics in their financial management.
Read More
- We’re Terrible At Organizing Things.’ Tom Holland Reveals The Sweet Holiday Scheme He And Zendaya Are Going To Try Next Year
- Yarrow Slaps’ Distorted Celebrity Portraits Take Center Stage in New Video Game-Inspired Show
- Path of Exile 2: How To Find & Unlock the Realmgate
- NewsNation Taps Leland Vittert to Replace Dan Abrams
- Cookie Run Kingdom: Shadow Milk Cookie Toppings and Beascuits guide
- Girls Frontline 2 Exilium tier list
- XLARGE Celebrates Lil Wayne With New Collection
- Million-Dollar Crypto Scandal: Abra Pays Up in SEC Settlement
- Rooster Teeth Is Back and Promises To Go Back to Its Roots
- Deva: Shahid Kapoor and Pooja Hegde’s lip-lock scene gets trimmed by CBFC? Film’s runtime and rating revealed
2024-12-15 01:18