American business intelligence and software giant MicroStrategy Inc. is poised to secure a spot in the prestigious Nasdaq 100 Index. According to Guru Focus, this development arises as tech firms like Moderna face potential exclusion, creating openings for new entrants like MicroStrategy.
MicroStrategy’s Growing Influence
The official list of changes to the Nasdaq 100 Index is expected on December 13. However, Bloomberg Intelligence has already suggested high confidence in MicroStrategy’s inclusion, with Senior ETF Analyst Eric Balchunas highlighting its strong candidacy. Alongside MicroStrategy, Palantir Technologies is also rumored to be a contender.
$MSTR is likely to be added to $QQQ on 12/23 (w/ announcement coming 12/13). Moderna likely to get boot (symbolic). Below is best guess of adds/drops via @JSeyff. Likely a 0.47% weight (40th biggest holding). There's $550b of ETFs tracking the index. S&P 500 add next yr prob. pic.twitter.com/rmTavtvWQL
— Eric Balchunas (@EricBalchunas) December 10, 2024
Inclusion criteria for the Nasdaq 100 are stringent. Companies must have traded on the Nasdaq exchange for at least two years, maintain a daily trading volume of 200,000 shares, and ensure timely financial reporting. MicroStrategy’s compliance with these requirements, coupled with its robust market presence, strengthens its case for the index.
Bitcoin Bets Fuel Growth
Founded in November 1989, MicroStrategy initially focused on advanced software and cloud services. However, the firm’s trajectory shifted dramatically in August 2020 when it adopted a Bitcoin-first treasury reserve strategy. Under this approach, the company has consistently accumulated Bitcoin, amassing a staggering 423,650 BTC to date.
This bold strategy has not only bolstered MicroStrategy’s financial portfolio but also amplified its global influence in the cryptocurrency sector.
Michael Saylor’s Role in Driving Advocacy
MicroStrategy’s co-founder and Executive Chairman, Michael Saylor, has been instrumental in steering the company’s Bitcoin-centric strategy. A staunch advocate for the cryptocurrency, Saylor has actively promoted Bitcoin adoption among corporations.
Also Read: MicroStrategy Acquires 27,200 BTC in Two Weeks, Now Holds $22.87B in Bitcoin as Price Soars to $82K
In a recent effort, Saylor presented a three-minute pitch to Microsoft’s board, urging the tech giant to adopt Bitcoin as a reserve asset. However, the board ultimately rejected the proposal, opting to maintain its traditional financial practices.
Despite this setback, MicroStrategy’s Bitcoin strategy has inspired other firms, including Tesla and Semler Scientific, to explore cryptocurrency adoption. The anticipated Nasdaq 100 inclusion would mark a significant milestone for MicroStrategy, further solidifying its position as a key player at the intersection of traditional finance and digital assets.
With the official announcement just days away, all eyes are on MicroStrategy as it continues to redefine corporate treasury strategies through its Bitcoin advocacy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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