MicroStrategy’s shares surged 4% in premarket trading as the company prepared to join the Nasdaq 100 index, a milestone that links the tech-heavy index to Bitcoin. Known for its substantial Bitcoin holdings, the company possesses $44 billion worth of the cryptocurrency, roughly 2% of its global supply. This inclusion is expected to attract more institutional investors via funds like the Invesco QQQ Trust, which mirrors the Nasdaq 100, potentially boosting MicroStrategy’s stock and indirectly benefiting Bitcoin prices.
The company’s shares have soared 550% this year, reflecting the surging price of Bitcoin and a doubling of its cryptocurrency holdings through equity and debt deals. Analysts suggest this move could trigger a feedback loop of rising stock and Bitcoin prices, as MicroStrategy may reinvest through further acquisitions. Its market cap now exceeds $100 billion, doubling the value of its Bitcoin reserves, despite a $340 million net loss reported in its latest quarterly earnings.
Joining the Nasdaq 100 alongside companies like Palantir and Axon Enterprise, MicroStrategy’s inclusion signifies growing mainstream acceptance of cryptocurrencies in financial markets. While its stock rallied, traditional tech names such as Illumina and Moderna were removed from the index. Analysts view this as a significant milestone for the broader cryptocurrency industry, highlighting MicroStrategy’s pivotal role in bridging traditional markets and digital assets.