MicroStrategy continues its ascent – Nasdaq 100 inclusion boosts stock

The shares of the company MicroStrategy experienced a price increase of about 3% after it was announced that the software corporation will be listed in the Nasdaq 100 Index in the future. This inclusion in the technology-oriented index could further brighten the stock's future prospects. The Nasdaq 100, which comprises significant non-financial companies, thereby gains indirect Bitcoin exposure. MicroStrategy holds Bitcoin valued at 44 billion USD on its balance sheet, which represents about 2% of the total global supply of the cryptocurrency. Additional purchases by funds tracking the Nasdaq 100 could further support the positive price development of MicroStrategy. The stock has already recorded an impressive gain of 550% this year in parallel with the Bitcoin price increase. Matthew Dibb, Chief Investment Officer at Astronaut Capital, views this as the beginning of a cycle of capital flows that could further drive the spot price of Bitcoin. As ETFs like the Invesco QQQ Trust, with assets under management of 328 billion USD, might be forced to purchase MicroStrategy shares, the stock price could continue to rise. This would enable the company to buy more Bitcoin through debt, bonds, and stock offerings. Bitcoin reached a new high of over 106,000 USD after Donald Trump suggested plans to create a strategic US Bitcoin reserve. Under the leadership of Michael Saylor, MicroStrategy has achieved a price increase of 3,200% since 2020, the introduction of Bitcoin as a financial reserve. This year, the company doubled its holdings through convertible bonds and stock sales, despite reporting a net loss of 340 million USD in the third quarter. Gautam Chhugani, an analyst at Bernstein, describes the company's Bitcoin strategy as a long-term, strong "buy and hold" tactic. The market capitalization of MicroStrategy rose to over 100 billion USD, more than double the value of their Bitcoin reserves. Companies like Riot Platforms and smaller biotechnology companies such as Enlivex Therapeutics and Hoth Therapeutics are also increasingly investing in Bitcoin. Matthew Dibb emphasizes that the current development represents a significant milestone for the crypto industry and will provoke both positive and critical voices.