MicroStrategy Joins Nasdaq 100: A Major Milestone for Bitcoin and Tech Stocks

MicroStrategy's Rise to Nasdaq 100

Tysons, Virginia-based MicroStrategy is making headlines as it becomes one of the three companies added to the Nasdaq 100 index, effective December 23. This addition marks a significant milestone for the company, which has seen its market cap swell to nearly $98 billion this year, following a remarkable 550% stock rally.

The Nasdaq 100 Index

The Nasdaq 100 index comprises the 100 largest non-financial companies listed on the Nasdaq stock market, serving as a benchmark for leading Nasdaq stocks since its introduction in 1985. Currently, Marriott International is the only other D.C.-based company listed in this prestigious index.

Bitcoin Proxy

In recent years, MicroStrategy has transformed into a proxy for cryptocurrency, particularly Bitcoin. The company has amassed Bitcoin holdings worth over $41 billion, solidifying its position as one of the largest holders of the cryptocurrency globally. Just this past Monday, MicroStrategy announced the purchase of an additional $1.5 billion in Bitcoin, marking its sixth consecutive week of new acquisitions.

Implications of Inclusion

With its inclusion in the Nasdaq 100, MicroStrategy will also be part of the Invesco QQQ Exchange Traded Fund, which tracks the performance of the index. This addition comes at a time when Bitcoin has reached multiple record highs, with its value more than doubling in 2024.

Changes to the Index

As MicroStrategy joins the index, companies like Illumina, Super Micro Computer, and Moderna will be removed, reflecting the ongoing evolution of the Nasdaq 100.