Self-proclaimed as a Bitcoin development company, MicroStrategy is officially included in the Nasdaq 100 index, effective before the market opens on December 23, expected to drive a new wave of buying.
(Understanding MicroStrategy from scratch: The transformation from business intelligence (BI) to a Bitcoin empire)
MicroStrategy is officially included in the Nasdaq 100 index.
The Nasdaq 100 index includes the 100 largest non-financial companies listed on Nasdaq by market capitalization, primarily from the technology, consumer goods, healthcare, and industrial sectors, particularly as technology companies hold a significant weight in the Nasdaq 100 index, making it an important benchmark for measuring the performance of the technology industry.
The Nasdaq annually changes the composition of the Nasdaq 100 index. The selected companies are primarily based on the market capitalization ranking on the last trading day of November (this year it's November 29). Stocks must also meet liquidity and free float percentage qualification requirements.
ETFs like QQQ will automatically become buyers.
This also means that popular ETFs like the Invesco QQQ Trust will automatically become buyers. QQQ is an ETF that tracks the Nasdaq 100 index, issued by Invesco, established on March 10, 1999, and is the most commonly purchased ETF by investors who love technology stocks, currently managing assets of $325.8 billion.
According to CNBC, Bernstein analyst Gautam Chhugani stated: "This will lead to MSTR being included in some of the largest ETFs, such as QQQ (the fifth largest ETF), triggering a one-time new buying wave and continuing participation in future capital inflows."
But he also stated: "The market may focus on the 2025 inclusion in the S&P 500 index, and considering the profitability of its software business, inclusion in the S&P 500 may be challenging."
Previously, Bloomberg ETF analyst Eric Balchunas also mentioned that currently $550 billion in ETFs track this index, predicting it will bring $2.093 billion in passive buying funds. And next year, MicroStrategy has a greater chance of joining the S&P 500 index.
(MicroStrategy may join the Nasdaq 100 index, automatically infiltrating holdings in ETFs like QQQ)
MicroStrategy (MSTR) stock price rose 4.2% on Friday, and increased another 0.54% after hours, up 490% year-to-date, far exceeding Bitcoin's 140%.
This article states that MicroStrategy is officially included in the Nasdaq 100 index, and ETFs like QQQ will automatically become buyers. It first appeared in Chain News ABMedia.