- Nasdaq is rebalancing its Nasdaq 100 index
- MicroStrategy will be a part of it starting in early 2025
- MSTR stock is already up 7% but down 1% later in the day
Nasdaq announced that it will include MicroStrategy in the Nasdaq-100 starting in early 2025.
In response, MicroStrategy shares jumped 7%, although a little later they dropped 1% and still the positive reaction is now recorded.
More About MicroStrategy’s Success
MicroStrategy is celebrating another achievement, or rather recognizing achievement over the course of 2024, when it posted a 547% gain, significantly more than the S&P 500.
This is largely because it has become the Bitcoin proxy through which many other companies are joining Bitcoin, a growth that is also rapid we have seen of late.
More specifically, Nasdaq will rebalance the Nasdaq-100 and MSTR will be in it by 2025, as well as in the all-important Invesco QQQ Trust ETF. This news has already provided an additional boost for MicroStrategy, as its shares jumped 7%, albeit falling 1% later and now trading at ~$394.07.
Bernstein analyst Gautam Chhugani wrote Monday:
“MSTR’s Bitcoin buying program is unprecedented on the street, and makes it the largest corporate owner of Bitcoin (2% of supply equivalent to $44Bn market value). Inclusion in Nasdaq100 further improves MSTR’s market liquidity, further expanding its capital flywheel and Bitcoin buying program.”
Conclusion
As we’ve noted before, even if some companies and investors don’t believe in Bitcoin as much as MicroStrategy itself – the company demonstrates a sound and consistent strategy, which is important for investors in any market and with any asset.
Keep in mind, that nobody is protected from being mistaken sometimes and Michael Saylor proposes pretty drastic strategies – but today they are deservedly celebrating an important milestone in the company’s history.
Be aware and stay tuned.
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