MicroStrategy Stock Officially Joins Nasdaq 100, Bitcoin Price Responds

MicroStrategy, a company famous for its continuous Bitcoin buying strategy, will officially join the Nasdaq 100 index on December 23. This move may continue to increase demand for this stock, which has already risen strongly in line with the price increase of Bit in this year. After this news, the price of Bit also rose slightly from $101,200 to $102,300. The Nasdaq 100 is an index that includes the 100 largest non-financial companies in the Nasdaq Composite index, which focuses on the technology sector. Being added to this index means that ETFs, including the Invesco QQQ Trust (the 5th largest ETF with $325 billion in assets), will automatically buy MicroStrategy stock to rebalance their portfolio. MicroStrategy's stock has risen more than 6 times this year, far exceeding the nearly 140% increase of Bit over the same period. This announcement was made on Friday, after the market closed, and will take effect just before the trading session opens on 12/23. According to Gautam Chhugani, an analyst at Bernstein, this will lead to MicroStrategy's inclusion in large ETFs like QQQ, creating new buying demand and continuing to benefit from capital inflows in the future. Chhugani also predicted that MicroStrategy may aim to join the S&P 500 in 2025, although this may be challenging due to the profitability of the company's software business. MicroStrategy was initially an enterprise software company, but since 2020, under the leadership of Michael Saylor, the company has shifted its strategy to focus on holding Bit. Currently, MicroStrategy is issuing convertible bonds to raise Capital to buy Bit, and the company's stock tends to fluctuate more strongly than Bit itself.