MicroStrategy Debuts on Nasdaq-100, Boosting Bitcoin Exposure and ETF Inflows

In the latest development, Bitcoin proxy MicroStrategy has officially debuted on the Nasdaq-100. Data from NASDAQ revealed that Palantir PLTR and Axon Enterprise AXON joined the Nasdaq 100 alongside MicroStrategy. They replaced Illumina (ILMN), Super Micro (SMCI), and Moderna (MRNA), with the reconstituted index set to begin trading on Dec. 23.

NASDAQ 100 Gains Indirect BTC Exposure

Notably, MSTR entered at the 52th position, accounting for about 0.42% of the total market capitalization of all companies in the index. Nasdaq noted that ETFs that track the Nasdaq 100 will automatically include MicroStrategy in their holdings. For instance, the Invesco QQQ ETF QQQ, a popular tech-focused fund with $320 billion in assets, will now acquire shares of MicroStrategy, regardless of investor preference.

The inclusion of MicroStrategy in the Nasdaq 100 not only reflects the growing acceptance of cryptocurrency but also introduces new volatility to the index. Nasdaq noted that his shift could have extensive implications for both public markets and the broader ETF sector.

Bloomberg ETF analyst James Seyffart had previously predicted that the inclusion could lead to an influx of around $2.1 billion in buying activity from ETFs that track the Nasdaq-100. Remarkably, the company’s stock has surged around 476% this year, with shares gaining momentum alongside Bitcoin’s price movements. MSTR stock reached a record high of around $473 on November 20, when Bitcoin traded above $92,000.

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MSTR Buys More BTC

Besides, recently, MicroStrategy has increased its holdings for the seventh consecutive week. The company bought 5,262 BTC for a total of $561 million in the week ended Dec. 22 to take its total holdings to 444,262 BTC. The latest acquisitions were funded by share sales under the company’s at-the-market program (ATM). MicroStrategy has $7.08 billion left on the ATM program. This news was announced right after MSTR was added to the Nasdaq 100 index. 

Originally an enterprise software company, MicroStrategy pivoted in 2020 under its founder, Michael Saylor, who has embraced Bitcoin with firm commitment. The company continues to acquire more Bitcoin, betting its entire business on the cryptocurrency’s future. Bitcoin is up about 120% this year due to rising adoption. Moreover, President-elect Trump’s plans to create a U.S. bitcoin strategic reserve has further fueled the enthusiasm of crypto bulls.