MicroStrategy shares will be included in the Nasdaq 100 index

Nasdaq announcedthat Michael Saylor-founded MicroStrategy (MSTR) will be added to the Nasdaq-100 on December 23.

Palantir Technologies Inc. will also be included in the index, according to the press release. (PLTR) and Axon Enterprise, Inc. (AXON); will be excluded – Illumina (ILMN), Super Micro Computer (SMCI) and Moderna (MRNA).

“Adding stocks to the index means ETFs, including the popular Invesco QQQ Trust with $325 billion in assets, will automatically start buying them,” CNBC reports.

The Nasdaq-100 Index consists of the 100 largest non-financial companies by capitalization that are traded on the NASDAQ exchange.

Community reaction

The crypto community was optimistic about the inclusion of MicroStrategy in the Nasdaq-100.

“Now that MSTR is added to Nasdaq, every major pension fund, sovereign wealth fund and individual retirement account has access to Bitcoin,” said Will Clemente, co-founder of Reflexivity Research.

Head of Alpha Strategies at Bitwise Invest Jeff Park wrote:

“The deal of the decade is just getting started. Buckle up.”

Founder of Hartmann Capital Felix Hartmann stated:

“This news will not be priced in until the public markets open.”

According to the expert, due to increased competition, many asset managers will also begin to directly invest in Bitcoin or MicroStrategy shares.

CNBC analysts allowed the shares of the company founded by Saylor to continue to rise. According to their observations, securities have grown approximately sixfold this year, while Bitcoin has only grown by a “modest” 140%.

Bernstein analyst Gautam Chugani suggested that “the market will target inclusion [MSTR] to the S&P 500 index in 2025.

Founded in 1989, MicroStrategy initially specialized in enterprise-grade analytics software.

In August 2020, the IT company, with a market capitalization of approximately $1.3 billion, suddenly announced the acquisition of approximately 21,454 BTC valued at approximately $250 million. It became the first publicly traded company on the Nasdaq exchange to allocate capital in Bitcoin.

Now MicroStrategy’s capitalization is approaching $97 billion. The company’s balance sheet contains bitcoins worth more than $43 billion.

Earlier, Bloomberg analyst James Seyffart estimated that after inclusion in the Nasdaq-100, the volume of purchases of the company’s securities through ETFs would be at least $2.1 billion.

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Source: Cryptocurrency

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