MicroStrategy Qualifies to Join the Nasdaq-100 Index Following a Series of Sizable Bitcoin Purchases

The inclusion will occur on 23 December, ahead of market opening, and is expected to bolster the firm's stock value as the ETFs tracking the index will acquire MicroStrategy shares to mirror its performance.

Nasdaq recently announced the inclusion of MicroStrategy in its Nasdaq-100 Index following the firm's massive Bitcoin purchases.

The move, set to take place on 23 December before the market opens, will likely boost MicroStrategy's stock performance. This is because exchange-traded funds (ETFs) that track the index will need to acquire MicroStrategy shares to reflect the firm's performance in the index.

With MicroStrategy's addition to the index, analysts are expecting the firm's stock to continue performing strongly.

"MicroStrategy's inclusion in the Nasdaq-100 is expected to deliver a ~1% price boost from index fund buying, while also amplifying its spotlight and credibility as a top performer, thanks to its leveraged Bitcoin strategy," explained BRN analyst Valentin Fournier.

Year-to-date, MicroStrategy's stock price has surged by almost 500%, outperforming even Bitcoin's 140% surge and continuing to reach new highs.

However, MicroStrategy's strength can be largely attributed to its consistent Bitcoin investments. The firm initially pivoted to Bitcoin in 2020 as a way to preserve the value of its reserve assets. This move has positioned MicroStrategy as the largest corporate holder of Bitcoin.

As of 8 December, MicroStrategy holds about 423,650 BTC, purchased at a cost of $25.6 billion. With Bitcoin recently surpassing $100,000, this investment is now valued at approximately $42.43 billion.

In a post on 15 December, MicroStrategy CEO Michael Saylor hinted at the firm's first Bitcoin purchase above the $100K mark, asking his followers whether MicroStrategy’s Bitcoin portfolio tracker SaylorTracker was "missing a green dot."

Is https://t.co/Bx3917zMqi missing a green dot? pic.twitter.com/B3Zzd6M1uV

MicroStrategy's most recent purchase was announced last week, with the firm acquiring 21,550 BTC for around $2.1 billion.

According to a US Securities and Exchange Commission (SEC) filing, MicroStrategy acquired 21,550 tokens for an average price of approximately $98,783 from 2 to 8 December.