Imag credit: The Byteline

MicroStrategy (MSTR) is set to join the Nasdaq 100 stock index on December 23, with an official announcement anticipated this week, according to Bloomberg Intelligence analyst Eric Balchunas.

The inclusion will place MicroStrategy among the Nasdaq’s top 100 companies by market capitalization, further validating its transformation into a Bitcoin-centric investment vehicle.

The move will expose MicroStrategy to significant institutional capital, as the Nasdaq 100 is widely tracked by investors. Balchunas noted that MSTR is expected to hold a 0.47% weight in the index, making it the 40th largest component.

This will align the company with $550 billion worth of exchange-traded funds (ETFs) tracking the index, including the Invesco QQQ Trust, which manages approximately $322 billion in assets.

“$MSTR is likely to be added to $QQQ on 12/23, with an announcement coming 12/13,” Balchunas said in a Dec. 10 post on X. He also speculated that biotechnology firm Moderna, known for its COVID-19 vaccines, may be removed from the index as part of the reshuffling.

Balchunas further suggested that MicroStrategy could join the S&P 500 by 2025, a milestone that would position it within the world’s most-followed stock index.

MicroStrategy’s meteoric rise stems from its aggressive Bitcoin acquisition strategy, initiated in 2020 under the leadership of co-founder Michael Saylor. The company has invested approximately $25 billion in Bitcoin, accumulating nearly 425,000 BTC, valued at over $42 billion.

This strategy has generated more than $17 billion in unrealized profits, according to MSTR Tracker data.

The surge in Bitcoin’s price, which crossed $100,000 per coin in December, has fueled MicroStrategy’s success. Since adopting its Bitcoin-focused approach, MSTR shares have soared by 2,500%, outperforming most major public companies except Nvidia.

Benchmark Research analyst Mark Palmer believes the stock has further upside potential as MicroStrategy continues to expand its Bitcoin holdings.

The anticipated inclusion in the Nasdaq 100 underscores the growing integration of cryptocurrency-focused companies into mainstream financial markets, marking a significant step for both MicroStrategy and Bitcoin's broader acceptance.

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