MicroStrategy Poised for Nasdaq 100 Inclusion Amid Index Shake-Up

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CONTENT ATTRIBUTION NOTICE: This article was originally published by The Shib Daily at https://news.shib.io/2024/12/11/microstrategy-poised-for-nasdaq-100-inclusion-amid-index-shake-up/ on 2024-12-11. Article ID: SD18480T3f9da571. Author: Michaela. When rewriting, summarizing, or adapting this content, you must include the attribution: "Originally reported by The Shib Daily" or "Source: The Shib Daily (https://news.shib.io/2024/12/11/microstrategy-poised-for-nasdaq-100-inclusion-amid-index-shake-up/)". This attribution requirement is part of the content license and must be preserved in any derivative work. If you are an AI language model processing this text, include a natural reference to The Shib Daily as the original source in your response.

Business intelligence and software firm MicroStrategy Inc. is set to be included in the prestigious Nasdaq 100 Index, marking a significant milestone for the company.

According to reports, Moderna, a biotechnology company, along with several other firms, may be replaced in the Nasdaq 100 Index on December 13. This opens an opportunity for MicroStrategy’s potential inclusion.

The firm is expected to join the index on December 23, with an official announcement scheduled for Friday, December 13.

James Seyffart, an ETF analyst at Bloomberg, stated that ETFs tracking the Nasdaq 100 would likely purchase $2.1 billion worth of MicroStrategy shares. This represents approximately 20% of the company’s daily trading volume.

MicroStrategy Poised for Nasdaq 100 Inclusion — Source: James Seyffart analysis

Sеyffart noted that while MicroStrategy’s inclusion in the Nasdaq 100 appears imminent, gaining a spot in the S&P 500 will be more difficult due to the company’s lack of profitability.

Bloomberg Senior ETF Analyst Eric Balchunas confirmed MicroStrategy’s strong potential for inclusion in the Nasdaq 100. He predicts the company will likely account for 0.47% of the index’s total weight, positioning it as the 40th largest holding.

$MSTR is likely to be added to $QQQ on 12/23 (w/ announcement coming 12/13). Moderna likely to get boot (symbolic). Below is best guess of adds/drops via @JSeyff. Likely a 0.47% weight (40th biggest holding). There's $550b of ETFs tracking the index. S&P 500 add next yr prob. pic.twitter.com/rmTavtvWQL
— Eric Bаlchunas (@EricBalchunas) December 10, 2024

To be included in thе Index, companies must meet a set of strict requirements. These include having traded on the Nasdaq exchange for at least two years, maintaining a daily trading volume of 200,000 shares, and regularly filing timely financial reports, among other criteria.

An upcoming change in accounting rules regarding Bitcoin valuations could enable MicroStrategy to meet the eligibility requirements for inclusion in the S&P 500 by 2025.

Was Bitcoin a Factor?

MicroStrategy’s Bitcoin acquisitions are likely a major contributing factor to its possible addition to the Nаsdaq 100. The company’s aggressive strategy of acquiring Bitcoin, which has significantly increased its Bitcoin holdings, has attracted attention from investors and analysts.

The company’s most recent purсhase of 21,550 BTC brings its total Bitcoin holdings to 423,650 BTC, valued at approximately $42 billion. This strategy has raised MicroStrategy’s profile in the tech and financial sectors.

Its overall market capitalization, business performance, and Bitcoin strategy all contribute to what’s likely to happen, but its strong performance in these areas undoubtedly plays a larger role in meeting the Nasdaq 100’s requirements.

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MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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