Self-styled as a Bitcoin development company, MicroStrategy is officially included in the Nasdaq 100 index, effective before the market opens on December 23, and is expected to drive a new wave of buying.

(Understanding MicroStrategy from scratch: The transformation from business intelligence (BI) to 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, primarily from the technology, consumer goods, healthcare, and industrial sectors. Technology companies, in particular, hold a significant share in the Nasdaq 100 index, making it an important benchmark for measuring the performance of the technology sector.

The Nasdaq adjusts the composition of the Nasdaq 100 index each year. Companies are selected primarily based on their market capitalization rankings on the last trading day of November (this year is November 29). Stocks must also meet liquidity and free float percentage eligibility requirements.

ETFs like QQQ will automatically become buyers.

This also means that popular ETFs like Invesco QQQ Trust will automatically become buyers. QQQ is an ETF tracking the Nasdaq 100 index (NASDAQ-100 Index), issued by Invesco, established on March 10, 1999, and is the most commonly purchased ETF by investors favoring tech 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 spree and ongoing participation in future capital inflows."

But he also stated: "The market may focus on the inclusion criteria for the S&P 500 in 2025, and considering inclusion in the S&P 500 may be challenging due to the profitability of its software business."

Previously, Bloomberg ETF analyst Eric Balchunas also mentioned that there are currently $550 billion in ETFs tracking this index, predicting it will bring $2.093 billion in passive buying capital. Moreover, MicroStrategy has a greater chance of joining the S&P 500 next year.

(MicroStrategy may join the Nasdaq 100 index, automatically seeping into QQQ and other ETF holdings)

MicroStrategy (MSTR) shares rose 4.2% on Friday, and increased another 0.54% in after-hours trading, 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.