Summary:
MicroStrategy's stock jumped over 5% after Nasdaq announcement.
Inclusion in Nasdaq-100 effective Dec. 23.
MicroStrategy's stock is up 547% this year, significantly outpacing the S&P 500.
The company owns over 420,000 bitcoins, making it a major Bitcoin proxy.
Analyst notes inclusion will improve market liquidity and support Bitcoin buying program.
MicroStrategy's Stock Surge
Shares of MicroStrategy jumped significantly on Monday after Nasdaq announced that it will join the tech-heavy Nasdaq-100 index. The stock experienced a rise of over 5% during premarket trading.
Michael Saylor, Chairman and CEO of MicroStrategy, is seen speaking at the Bitcoin 2022 conference in Miami.
Nasdaq-100 Inclusion
The inclusion in the Nasdaq-100, effective Dec. 23, follows MicroStrategy's remarkable performance this year, with its stock up 547%—substantially outperforming the S&P 500's 26.9% gain. This surge is attributed to the rising price of Bitcoin, which recently traded around $104,650, increasing by over 1% on the day.
Impact on Market Liquidity
MicroStrategy has been accumulating Bitcoin for years, currently holding over 420,000 bitcoins. This makes it a significant proxy for Bitcoin in the corporate world. With its inclusion in the Invesco QQQ Trust ETF, which tracks the Nasdaq-100, MicroStrategy is expected to see passive inflows, further boosting its stock price.
Analyst Gautam Chhugani from Bernstein highlighted that MicroStrategy’s Bitcoin buying program is unprecedented, making it the largest corporate holder of Bitcoin, equivalent to 2% of the total supply valued at around $44 billion. This addition to the Nasdaq-100 will enhance MicroStrategy’s market liquidity, expanding its capital and Bitcoin acquisition strategy.
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