MicroStrategy Added to Nasdaq-100 Index

(Reuters) – MicroStrategy will be added to the tech-heavy Nasdaq-100 Index, the exchange operator announced on Friday, following a meteoric surge in the shares of the bitcoin buyer.

The change will take effect before the market opens on Dec. 23, Nasdaq stated.

Inclusion in the index typically boosts the stock's price, as exchange-traded funds seeking to replicate the index's performance purchase shares of the newly included firm.

Data analytics firm Palantir Technologies (NASDAQ:PLTR) and Taser maker Axon Enterprise (NASDAQ:AXON) were also added to the Nasdaq-100 Index alongside MicroStrategy. Meanwhile, gene-sequencing equipment maker Illumina (NASDAQ:ILMN), AI server maker Super Micro Computer (NASDAQ:SMCI), and vaccine maker Moderna (NASDAQ:MRNA) were removed, according to Nasdaq.

MicroStrategy, recognized as an aggressive investor in the world's largest cryptocurrency, has seen its shares soar more than six-fold this year, propelling its market value to almost $94 billion.

The company began acquiring and holding bitcoin in 2020 as its software business revenue declined. It is now the largest corporate holder of the cryptocurrency.

Analysts have noted that MicroStrategy's strategy to purchase bitcoin to safeguard the value of its reserve assets has enhanced the stock's appeal, which tends to align with cryptocurrency performance.

Bernstein analysts anticipate that with the Nasdaq-100 inclusion, the market is likely aiming for S&P 500 inclusion for MicroStrategy in 2025.

The brokerage also predicts that the company's prospects will continue to improve next year, stating it expects "more visibility and recognition beyond fresh ETF inflows" due to the Nasdaq-100 inclusion.

Bitcoin has experienced a rally in recent weeks as U.S. President-elect Donald Trump’s victory has fueled optimism in the crypto sector regarding potential regulatory easing. Earlier this month, the digital asset surged above $100,000 for the first time.

"Management has shown no signs of slowing this (bitcoin-buying) down and are comfortable buying bitcoin in the $95K-$100K range," Bernstein analysts mentioned.

As of Dec. 8, the company held roughly 423,650 bitcoins purchased for about $25.6 billion based on the average purchase price. The investment is valued at around $42.43 billion, based on bitcoin's previous close, according to Reuters calculations.