MicroStrategy (MSTR), originally known as a business intelligence software company, has transformed into a major player in the cryptocurrency market, particularly known for its massive investments in Bitcoin (BTC-USD). This strategic pivot has significantly boosted its stock value, with shares rising more than 535% this year, leading to a current market capitalization of $85 billion. The company’s stock saw an additional 6.5% increase in early trading on Wednesday, printing just above the $401 level, fueled by the anticipation of its inclusion in the tech-heavy Nasdaq 100 index during the upcoming annual reshuffle.
The surge in MicroStrategy’s stock price coincides with Bitcoin reaching a historic $100,000 mark for the first time, doubling in value this year. This increase was partly driven by Donald Trump’s recent U.S. election victory, with investors betting on his promised crypto-friendly policies. A Reuter’s report notes that MicroStrategy, holding about 400,000 Bitcoins valued at approximately $42 billion, stands to benefit even further if it secures a spot in the Nasdaq 100, as this inclusion would push more investment firms to buy its stock to match the index’s composition.
To be eligible for the Nasdaq 100, a company must be among the top 100 by market value, have significant trading volume, and must not be classified within the financial sector. MicroStrategy fits these criteria, making its inclusion in the index highly probable, according to Art Hogan, chief market strategist at B. Riley Wealth Management. This move could indirectly expose the Nasdaq 100 to Bitcoin, potentially attracting a younger investor demographic interested in cryptocurrencies, as noted by Todd Rosenbluth of VettaFi.
The reshuffle announcement, set for Friday after market close, isn’t just about MicroStrategy. Other tech firms like Palantir (PLTR), which has seen its market value quadruple to $160 billion this year, are also in the running. Conversely, companies like Super Micro Computer (SMCI) might face removal due to delays in financial reporting, although its CEO, Charles Liang, remains confident about avoiding delisting.
MicroStrategy’s strategy since 2020, spearheaded by co-founder Michael Saylor, was to adopt Bitcoin as its primary treasury reserve amid declining software revenue. By leveraging both equity and debt, the company now controls over 2% of all Bitcoins in existence, positioning it uniquely within the corporate sector as the largest holder of this digital asset. This aggressive investment approach has not only redefined MicroStrategy but also positions it as a bellwether for how traditional companies might integrate cryptocurrency into their business models.
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