Key Takeaways
- MicroStrategi joined the Nasdaq-100 index as part of its annual reconstitution.
- The inclusion allows index-tracking funds, such as the Invesco KKK Trust, to gain exposure to MicroStrategi and its Bitcoin funds.
MicroStrategi ( MSTR ), along with Palantir Technologies ( PLTR ) and Akon Enterprise ( AKSON ), is officially part of the Nasdaq-100 ahead of the Dec. 23 market open, according to data from the Nasdaq. The three companies will replace Illumina Inc. (ILMN), Super Micro Computer Inc. (SMCI) and Moderna Inc. (mRNA).
According to the latest data, MSTR entered the 52nd position, accounting for about 0.42% of the total market capitalization of all companies in the index, according to data tracked by Slickcharts.
The addition comes as part of the Nasdaq-100’s annual reconstitution. MicroStrategi, with a market capitalization of $88.6 billion according to Yahoo Finance datajoins the index of the 100 largest non-financial securities listed on the Nasdaq stock exchange.
Bloomberg ETF analyst James Seiphart previously predicted the inclusion could lead to an influx of about $2.1 billion in buying activity from ETFs that track the Nasdaq-100.
The company’s stock is up roughly 476% this year, and the stock is gaining momentum in tandem with bitcoin’s price movements. MSTR shares hit a record high of around $473 on November 20, when Bitcoin was trading above $92,000.
Inclusion in the Nasdaq-100 will require index-tracking funds, including Invesco KKK Trust (KKK), to purchase MicroStrategi shares. This gives KKK investors indirect exposure to MicroStrategi and its Bitcoin funds.
Shares of MSTR jumped 11.5% to $364 last Friday, rallying the broader U.S. stock market and offsetting what appeared to be a tough week, according to Yahoo Finance.
Global markets were rocked by hawkish signals from the Federal Reserve. Bitcoin briefly dipped below $93,000 on Friday before recovering to above $96,000, by TradingView.
Despite Friday’s gains, the major indexes still closed the week flat. The S&P 500 fell about 2%, the Dow Jones Industrial Average about 2.3% and the Nasdaq Composite about 1.8%.
According to the Nasdaq reportwhile index inclusion usually leads to increased demand and higher valuations, especially in the short term, the expected benefits are often factored into the announcement price rather than the actual inclusion date.
