MicroStrategy (MSTR) is on the brink of a significant milestone, as analysts predict its impending addition to the Nasdaq 100 Index on December 23. This anticipated inclusion is expected to trigger substantial net buying—estimated at $2.1 billion— from exchange-traded funds (ETFs), which could substantially influence MSTR’s stock performance in the near term.
According to industry insiders, the announcement regarding MSTR’s entry into the Nasdaq 100 is expected this Friday, December 13. The addition is projected to provide a boost to MSTR, potentially increasing its market weight to around 0.47%, positioning it as the 40th largest holding in the index. This strategic shift comes at a time when MSTR has already outshined many major stocks and has a vigorous year-to-date gain of 450% as of now.
Eric Balchunas, a notable analyst in the ETF space, outlined the implications of this addition: “MicroStrategy’s inclusion could result in net buying that represents approximately 20% of its daily trading volume.” This significant inflow could pave the way for even greater momentum for the stock that has seen a remarkable resurgence, reaching its highest value since March 2000.
MicroStrategy’s ascent has been largely attributed to its aggressive Bitcoin acquisition strategy. The company has successfully amassed over 170,000 Bitcoins and raised $42 billion for further acquisitions. This relentless pursuit has not only made MSTR a key player in the tech stock category but also a critical figure in the cryptocurrency arena.
Despite its promising outlook regarding the Nasdaq 100, analysts caution that MSTR’s path to joining the S&P 500 remains complicated due to its current lack of profit. However, upcoming changes in accounting regulations concerning Bitcoin valuations could make the company eligible for S&P 500 inclusion by 2025.
In conclusion, as December 23 approaches, all eyes will be on MicroStrategy. Investors should monitor these developments closely, as the entry into the Nasdaq 100 could signal not just a pivotal moment for MSTR but also for the broader market dynamics. This might be the time to rethink your investment strategies as MSTR continues its impressive journey through the digital currency landscape.
