Nasdaq announces MicroStrategy’s inclusion in Nasdaq-100, what’s next?

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The Nasdaq-100 Index will welcome MicroStrategy, Palantir Applied sciences, and Axon Enterprise as new members earlier than market open on December 23, as announced by Nasdaq throughout its annual reconstitution on Friday.

The three firms will exchange Illumina, Tremendous Micro Laptop, and Moderna within the annual reconstitution of the index, which includes 100 of the most important non-financial firms listed on The Nasdaq Inventory Market.

With a market worth of $102 billion as of December 13, MicroStrategy is ready to rank fortieth on the Nasdaq-100.

Entering the Nasdaq-100, MicroStrategy stands to draw roughly $2.1 billion from ETFs that immediately monitor the index, which collectively handle round $451 billion in belongings, Bloomberg ETF analyst Eric Balchunas reiterated in a put up following Nasdaq’s announcement.

He added that the $2.1 billion shopping for estimate may be conservative because it excludes individually managed accounts, closed-end funds, and energetic methods.

This weighting equates to about $2.1b of shopping for by way of all of the ETFs that monitor the index which have $451b collectively. We didn’t embody SMAs or CITs or any energetic methods so it could possibly be a bit extra when all is claimed and achieved. @JSeyff

— Eric Balchunas (@EricBalchunas) December 14, 2024

This inflow of capital is projected to drive up MicroStrategy’s inventory value and improve its market visibility. Shares sometimes see an increase in value following their inclusion within the Nasdaq-100.

Bernstein analysts challenge MicroStrategy shares may attain $600 following its inclusion within the index, pushed by the anticipated capital influx from index-tracking funding funds.

Nasdaq-100 inclusion to spice up MicroStrategy’s Bitcoin shopping for energy

MicroStrategy has established itself as a significant participant within the Bitcoin market by its large holdings. The corporate’s inclusion within the Nasdaq-100 will seemingly speed up its formidable aim of accumulating $42 billion value of Bitcoin over the subsequent three years.

As MicroStrategy’s inventory value rises as a result of elevated demand, the corporate can have higher monetary flexibility to proceed its aggressive Bitcoin acquisition technique. Michael Saylor-led firm at present holds roughly 423,650 Bitcoin, valued at round $42 billion. The corporate has persistently expressed its intent to additional improve its Bitcoin holdings, even at increased costs.

MicroStrategy’s aggressive Bitcoin funding makes its inventory a proxy for Bitcoin. Which means proudly owning MicroStrategy shares supplies buyers with oblique publicity to the Bitcoin market.

Bitcoin was up barely following Nasdaq’s announcement. It’s now buying and selling above $102,000 million, reflecting a 2.5% improve within the final 24 hours, per CoinGecko.

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