MicroStrategy Joins Nasdaq-100 After Bitcoin-Driven Stock Surge

​MicroStrategy will be included in the Nasdaq-100 Index, effective before market open on December 23, as announced by the exchange operator. This decision follows a significant increase in the company's stock price, largely driven by its investments in Bitcoin.

Typically, inclusion in the Nasdaq-100 boosts stock prices since exchange-traded funds tracking the index tend to purchase shares of the newly added company. MicroStrategy, known for its aggressive Bitcoin investments, has seen its stock price increase more than six times this year, elevating its market capitalization to nearly $94 billion.

The company began accumulating Bitcoin in 2020 amid declining revenues from its software operations and has since become the largest corporate holder of the cryptocurrency. Analysts suggest that MicroStrategy's strategy to buy Bitcoin as a means of preserving the value of its reserves has made its stock more attractive, often mirroring Bitcoin's performance.

Bernstein analysts predict that following its Nasdaq-100 inclusion, the market may aim for MicroStrategy's inclusion in the S&P 500 by 2025. They anticipate continued improvement in the company's prospects next year and expect "more visibility and recognition beyond fresh ETF inflows" due to the Nasdaq-100 announcement.

In recent weeks, Bitcoin has experienced a rally, fueled by optimism in the crypto sector following U.S. President-elect Donald Trump's election. Earlier this month, Bitcoin surpassed the $100,000 mark for the first time.

Bernstein analysts noted that MicroStrategy's management remains committed to Bitcoin purchases, with plans to buy in the $95,000 to $100,000 range. As of December 8, the company holds approximately 423,650 Bitcoins, with a total investment of around $25.6 billion based on the average purchase price.