The Bitcoin Proxy exchange rate is going down against the Nasdaq-100

Key Takeaways

MicroStrategy has joined the Nasdaq-100 index as part of its annual rebasing.
The inclusion allows index-tracking funds such as the Invesco QQQ Trust to gain exposure to MicroStrategy and its Bitcoin holdings.

MicroStrategy ( MSTR ), along with Palantir Technologies ( PLTR ) and Axon Enterprise ( AXON ), are officially part of the Nasdaq-100 index ahead of the December 23 market open, according to data from Nasdaq. The three companies will replace Illumina Inc. (ILMN), Super Micro Computer Inc. (SMCI), and Moderna Inc. (mRNA).

According to the latest data, MSTR entered at the 52nd position, accounting for about 0.42% of the total market capitalization of all companies in the index, according to data followed by Slickcharts.

The addition comes as part of the Nasdaq-100's annual restructuring. MicroStrategy, with a market capitalization of $88.6 billion according to Yahoo Finance datajoins the index of the 100 largest non-financial securities listed on the Nasdaq stock exchange.

Bloomberg ETF analyst James Seyffart had previously predicted that the inclusion could lead to an inflow of about $2.1 billion in buying activity from ETFs that track the Nasdaq-100.

The company's stock is up about 476% this year, with shares getting a boost from Bitcoin's price movements. MSTR stock reached an all-time high of around $473 on November 20, when Bitcoin was trading above $92,000.

The inclusion in the Nasdaq-100 requires index-tracking funds, including the Invesco QQQ Trust (QQQ), to buy MicroStrategy shares. This gives QQQ investors an indirect view of MicroStrategy and its Bitcoin holdings.

MSTR shares jumped 11.5% to close at $364 last Friday, rallying with the broader US stock market and bucking what was shaping up to be a tough week, according to Yahoo Finance.

Global markets were shaken by hawkish signals from the Federal Reserve. Bitcoin fell just below $93,000 on Friday before recovering to over $96,000, according to TradingView.

Despite Friday's gains, the major indexes closed flat last week. The S&P 500 fell about 2%, the Dow Jones industrial average about 2.3%, and the Nasdaq Composite about 1.8%.

According to Nasdaq reportAlthough index inclusion usually leads to increased demand and higher valuations, especially in the short term, the expected benefits are often priced in when they are announced rather than actual. date of inclusion.