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

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The Nasdaq-100 Index will welcome MicroStrategy, Palantir Technologies, and Axon Enterprise as new members before the market opens on December 23, as name by Nasdaq during its annual reset on Friday.

The three companies will replace Illumina, Super Micro Computer, and Moderna in the annual rebuild of the index, which includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market.

With a market value of $102 billion as of December 13, MicroStrategy is expected to rank 40 on the Nasdaq-100.

Entering the Nasdaq-100MicroStrategy to attract about $2.1 billion from ETFs that directly track the index, which together manage about $451 billion in assets, Bloomberg ETF analyst Eric Balchunas reiterated in the post after the Nasdaq announcement.

He said the $2.1 billion purchase estimate may be conservative because it excludes separately managed accounts, closed-end funds, and active strategies.

This weighting equates to about $2.1b of buying through each ETF that tracks the index which has a combined $451b. We didn't include SMAs or CITs or any active strategies so it could be a bit more when all is said and done. @JSeyff

— Eric Balchunas (@EricBalchunas) December 14, 2024

This inflow of capital is expected to increase MicroStrategy's stock price and increase market visibility. Stocks typically see an increase in price after being included in the Nasdaq-100.

Bernstein MicroStrategy analyst project shares could reach $600 after being included in the index, driven by the expected capital inflow from index-tracking investment funds.

Nasdaq-100 Inclusion to Boost MicroStrategy's Bitcoin Buying Power

MicroStrategy has established itself as a major player in the Bitcoin market through its large holdings. The company's inclusion in the Nasdaq-100 is likely to accelerate its ambitious goal of amassing $42 billion worth of Bitcoin over the next three years.

As MicroStrategy's stock price rises due to increased demand, so will the company more financial flexibility to continue their aggressive Bitcoin acquisition strategy. A company led by Michael Saylor currently holds approximately 423,650 Bitcoins, with a value of approximately $42 billion. The company has consistently aimed to increase its Bitcoin holdings, even at higher prices.

MicroStrategy's aggressive Bitcoin investment makes its stock a proxy for Bitcoin. This means that owning MicroStrategy shares gives investors indirect insight into the Bitcoin market.

The Bitcoin exchange rate went up to Bitcoin a bit after the Nasdaq announcement. It now trades above $102,000 million, showing a 2.5% increase in the last 24 hours, for CoinGecko.

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