MicroStrategy Chairman and CEO Michael Saylor speaks at the Bitcoin 2022 conference in Miami on April 7, 2022.
Eva Marie Uzcategui | Bloomberg | Getty Images
shares micro strategy Nasdaq higher on Monday Announced Bitcoin Agent Will Join Tech-Heavy Nasdaq 100 Index.
The stock rose more than 5% in last premarket trading.
Nasdaq rebalances its Nasdaq 100 There is an index every year. Companies flagged for inclusion are mostly ranked based on their market capitalization as of the last trading day in November. Stocks also need to meet liquidity requirements and have a certain number of free float shares.
The index inclusion, which takes effect on Dec. 23, comes after MicroStrategy surged this year. The stock will gain 547% by 2024 – well over S&P 500 Index The price of Bitcoin rose to a new all-time high, rising 26.9%. Bitcoin last traded at around $104,650, up more than 1% on the day.
MSTR YTD
MicroStrategy has been building Bitcoin reserves for years, making it the face of digital currency. The company currently owns more than 420,000 Bitcoins.
The addition also means MicroStrategy will be included in the popular Invesco QQQ Trust ETF, which tracks the Nasdaq-100. This could lead to passive inflows into MicroStrategy stock, which could give the stock another boost.
Bernstein analyst Gautam Chhugani wrote on Monday: “MSTR’s Bitcoin purchase plan is unprecedented in the market and makes it the largest corporate owner of Bitcoin (2% of supply, equivalent to a market capitalization of $44 billion) “Inclusion in the Nasdaq 100 Index further improves MSTR’s market liquidity and further expands its capital flywheel and Bitcoin purchase plans. “
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