Michael Saylor, the chairman and CEO of MicroStrategy, recently made headlines at the Bitcoin 2022 conference in Miami. The tech-focused MicroStrategy has seen its stock rise, especially after the Nasdaq announced that the bitcoin proxy would join the Nasdaq-100 index. This news saw MicroStrategy’s stock rise by over 3%.
The Nasdaq-100 index undergoes an annual rebalancing, with companies included based mostly on market cap rankings as of the last trading day in November. They must also meet certain liquidity requirements and have a specific number of free floating shares.
MicroStrategy’s inclusion in the index, effective from December 23, comes after a significant surge in the company’s stock this year. In fact, in 2024, the company’s stock has increased by an impressive 547%, far exceeding the S&P 500’s 26.9% advance. This comes as bitcoin’s price continues to reach record-breaking heights.
The addition of MicroStrategy to the Nasdaq-100 index also means that it will be included in the famous Invesco QQQ Trust ETF, which tracks the Nasdaq-100. This could lead to passive inflows for MicroStrategy’s stock, potentially providing a further boost.
Michael Saylor, the founder and chairman of MicroStrategy, also recently revealed that the company has purchased an additional 15,350 BTC for approximately $1.5 billion, or around $100,386 per coin. This brings the company’s total bitcoin holdings to 439,000. MicroStrategy has been accumulating its bitcoin reserves for years, positioning it as a proxy for the digital currency.
Gautam Chhugani, an analyst from Bernstein, recently noted that MicroStrategy’s Bitcoin buying program is unlike anything else on the street. In fact, it makes the company the largest corporate owner of Bitcoin. Chhugani also suggested that being included in the Nasdaq100 could further improve MicroStrategy’s market liquidity, potentially expanding its capital flywheel and Bitcoin buying program.
For those interested in investing or keeping up with the world of finance and cryptocurrency, it’s certainly worth keeping an eye on MicroStrategy’s progress. You can also subscribe to CNBC PRO for exclusive insights and analysis, as well as live business day programming from around the world.
