• Analysts predict MicroStrategy’s inclusion in the Nasdaq-100 could attract $2.1 billion in ETF flows, marking a milestone for crypto-focused firms.
• MicroStrategy’s shares surged 450% in 2024, driven by aggressive Bitcoin acquisitions and growing investor interest in crypto-equity exposure.

Senior Bloomberg ETF analysts James Seyffart and Eric Balchunas have projected that MicroStrategy could soon join the Nasdaq-100 index, estimating it would rank as the 40th largest holding with a 0.47% weighting. According to the analysts, an official announcement is expected on December 13, with the inclusion set to take effect the following week.

Seyffart noted that the potential addition could attract at least $2.1 billion in share purchases by exchange-traded funds (ETFs), accounting for approximately 20% of MicroStrategy’s daily trading volume. Balchunas described the projection as the “best estimate” but acknowledged there were no apparent grounds for exclusion.

While inclusion in the Nasdaq-100 would mark a significant milestone for MicroStrategy, analysts highlighted challenges for its addition to the S&P 500 due to profitability requirements. However, Seyffart suggested that upcoming changes to Bitcoin accounting rules could make the firm eligible for the S&P 500 by 2025.

The Nasdaq-100 index, which tracks the largest non-financial companies on the Nasdaq exchange, is a critical benchmark for sectors such as technology and healthcare. With approximately $550 billion in ETF assets linked to it, any membership changes can lead to substantial shifts in investment flows, market sentiment, and trading activity.

ALSO READ: Michael Saylor Proposes Bitcoin Strategy to Microsoft, Predicts $5T Growth

MicroStrategy’s aggressive Bitcoin acquisition strategy continues to attract attention. On Monday, the company purchased an additional 21,550 BTC for $2.1 billion at $98,000 per coin, bringing its total holdings to 423,650 BTC—valued at approximately $42 billion at current market prices. This marks its fifth consecutive Bitcoin purchase, further solidifying its position as a major crypto-focused company.

The market has responded strongly to these developments. MicroStrategy’s shares have surged over 450% this year, far outpacing Bitcoin’s 110% rise during the same period. The company’s market value has climbed to $82 billion, up from $54.8 billion just a month ago, as investors increasingly view the firm as a gateway to crypto exposure through traditional equity markets.

Neither MicroStrategy nor Nasdaq has commented on the potential inclusion.

Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by Harshajit Sarmah.