Michael Saylor, chairman and CEO of MicroStrategy, speaks in the course of the Bitcoin 2022 convention in Miami on April 7, 2022.
Eva Marie Uzcategui | Bloomberg | Getty Pictures
Shares of MicroStrategy have been larger Monday after Nasdaq announced the bitcoin proxy will join the tech-heavy Nasdaq-100 index.
The inventory final traded greater than 5% larger in premarket buying and selling.
Nasdaq rebalances its Nasdaq-100 index yearly. The businesses flagged for inclusion are principally primarily based available on the market cap rankings as of the ultimate buying and selling day of November. The shares additionally want to satisfy liquidity requirement and have a sure variety of free floating shares.
The index inclusion, which takes impact Dec. 23, comes after MicroStrategy’s large surge this yr. In 2024, the inventory is up 547% — far outpacing the S&P 500’s 26.9% advance — as the worth of bitcoin scales to all-time highs. Bitcoin final traded round $104,650, up greater than 1% on the day.
MSTR yr up to now
MicroStrategy has been constructing its bitcoin reserves for years, making it a proxy for the digital forex. The corporate presently owns greater than 420,000 bitcoins.
The addition additionally means MicroStrategy will be included within the common Invesco QQQ Belief ETF, which tracks the Nasdaq-100. This will probably result in passive inflows for MicroStrategy inventory, probably giving it one other increase.
“MSTR’s Bitcoin shopping for program is unprecedented on avenue, and makes it the biggest company proprietor of Bitcoin (2% of provide equal to $44Bn market worth),” Bernstein analyst Gautam Chhugani wrote Monday. “Inclusion in Nasdaq100 additional improves MSTR’s market liquidity, additional increasing its capital flywheel and Bitcoin shopping for program.”
Subscribe to CNBC PRO for unique insights and evaluation, and stay enterprise day programming from around the globe.