As a seasoned crypto investor with a knack for spotting promising opportunities, I’ve always been intrigued by MicroStrategy (MSTR) and its bold move into Bitcoin (BTC). The news of MSTR joining the Nasdaq 100 stock index is a testament to their shrewd business strategy. This move not only elevates MSTR among the 100 largest stocks but also opens the floodgates for institutional capital, potentially boosting its value further.
According to a recent post by Bloomberg Intelligence analyst Eric Balchunas on the X platform, it’s anticipated that MicroStrategy (MSTR) could become part of the Nasdaq 100 stock index by December 23rd. This announcement might be made as early as this week.
2020 saw MicroStrategy, a software firm, move up the ranks to be included among the top 100 companies on the Nasdaq stock exchange based on market capitalization, due to its role as an unofficial Bitcoin (BTC) investment fund.
Additionally, it will make MSTR vulnerable to vast institutional investments worth hundreds of billions of dollars, as these funds are typically tied to widely recognized indices.
As a research analyst, I shared on December 10th that MicroStrategy holds approximately a 0.47% weight within the index it tracks, making it the 40th largest holding among the ETFs following this index, with an impressive total of $550 billion in assets under management.
To put it simply, adding MSTR to Invesco QQQ Trust’s (QQQ) collection means that MicroStrategy will now be part of this exchange-traded fund (ETF), which manages around $322 billion in investments.
According to Balchunas, it’s probable that MSTR will be included in QQQ on December 23rd (with an announcement expected on December 13th). In a symbolic move, he also indicated that Moderna might face removal from the index.
Moderna is a biotechnology company that developed vaccines used against the COVID-19 virus.
Balchunas indicated that Mastercard (MSTR) is likely to become a part of the S&P 500 – the globally recognized benchmark stock index – by 2025.
Bitcoin buying spree
From the year 2020 onwards, MicroStrategy, under the leadership of its co-founder Michael Saylor, embarked on an investment strategy where they allocated around $25 billion to purchase Bitcoin as part of their corporate reserves.
According to information from MSTR Tracker, their recent buying spree has amassed approximately $17 billion in potential profits. As of now, MicroStrategy controls over 425,000 Bitcoins with a value exceeding $42 billion, according to the data.
The strategy paid off as BTC’s price steadily rose, breaking $100,000 per coin in December.
Starting from 2020, MSTR has experienced an approximately 2,500% growth rate, surpassing nearly all significant publicly traded companies in terms of performance, with the exception of Nvidia.
Currently, the stock is valued at over twice the worth of its Bitcoin (BTC) reserves in the treasury. According to Mark Palmer, an analyst from Benchmark Research, this trend might persist since MicroStrategy may increase its Bitcoin purchases.
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2024-12-11 19:16