(Reuters) – MicroStrategy (MSTR) will be added to the tech-heavy Nasdaq-100 Index, the exchange operator said on Friday, after a meteoric rise in the bitcoin buyer’s shares.
The change will take effect before the market opens on Dec. 23, Nasdaq added.
An inclusion in the index typically boosts stock prices because exchange-traded funds that want to replicate the index’s performance buy shares of the included company.
MicroStrategy, an aggressive investor in the world’s largest crypto assets, has seen its shares rise more than sixfold so far this year, taking its market value to nearly $94 billion.
The company started buying and holding bitcoin in 2020 as revenue from its software business declined and is now the largest corporate holder of the cryptocurrency.
Analysts have said MicroStrategy’s decision to buy bitcoin to protect the value of its reserves has boosted the appeal of its stock, which tends to align with the cryptocurrency’s performance.
Bernstein analysts expect the market will likely set its sights on MicroStrategy’s inclusion in the S&P 500 in 2025, following its inclusion in the Nasdaq-100.
The brokerage also sees the company’s prospects continuing to improve next year, adding that they expect “greater visibility and recognition beyond new ETF inflows” resulting from the inclusion of the Nasdaq-100.
Bitcoin has rallied in recent weeks as the victory of newly-elected US President Donald Trump boosted the crypto sector’s hopes for easing regulatory roadblocks. Earlier this month, the digital asset catapulted above $100,000 for the first time.
“Management has shown no signs that this (bitcoin buying) will slow down and is comfortable buying bitcoins in the $95,000 to $100,000 range,” Bernstein analysts added.
The company held approximately 423,650 bitcoins, purchased for approximately $25.6 billion, based on the average purchase price on December 8.
According to Reuters calculations, the investment is worth about $42.43 billion, based on Bitcoin’s previous closing price.
(Reporting by Manya Saini and Rishabh Jaiswal in Bengaluru; Editing by Pooja Desai and Sam Holmes)
