MicroStrategy could join Nasdaq 100 with a possibility of $2.1 billion investment
Key take aways:
- An official announcement regarding MicroStrategy’s inclusion in the Nasdaq 100 Index is anticipated on December 13.
- The inclusion of the Nasdaq 100 by MicroStrategy may encourage the purchase of $2.1 billion worth of ETF shares.
It is anticipated that $2.1 billion in ETF share purchases will result from MicroStrategy’s December 23 listing on the Nasdaq 100, which could strengthen its Bitcoin holdings.
An official announcement is planned for this Friday, December 13, and MicroStrategy is anticipated to join the Nasdaq 100 Index on December 23. ETFs that track the Nasdaq 100 are anticipated to buy $2.1 billion worth of MicroStrategy shares, or roughly 20% of the company’s daily trading volume, according to Bloomberg ETF analyst James Seyffart.
According to ETF analyst Eric Balchunas, the company is also anticipated to have a 0.47% weight in the Nasdaq 100, making it the 40th largest holding in the index.
Seyffart stated that although MicroStrategy will soon join the Nasdaq 100, it will be more difficult to get into the S&P 500 because of its poor profitability.
However, the company might be eligible for the S&P 500 in 2025 due to an impending change in accounting regulations pertaining to Bitcoin valuations. This comes as MicroStrategy keeps up its aggressive acquisition strategy for Bitcoin.
The company just revealed yesterday that it had paid $2.1 billion, or $98,000 per Bitcoin, for 21,550 BTC. With this, MicroStrategy now has 423,650 BTC, or roughly $42 billion, in total Bitcoin holdings.
Also check out our latest story about the recent crypto market crash and what have we learned from it
