MicroStrategy Set To Join Nasdaq 100 Amid Bitcoin Surge

According to Eric Balchunas and James Seifert, two respected ETF analysts, MicroStrategy may soon enter the Nasdaq 100. MicroStrategy is still classified as a technology stock, bypassing the restriction that financial companies do not qualify.

If this prediction holds true, it will be done this Friday for the December 23 list.

Microstrategy on the Nasdaq 100?

Balchunas first announced this prediction on his social media site yesterday, saying that MicroStrategy will replace Moderna, the maker of the Covid-19 vaccine.

Led by a series of Bitcoin purchases, MicroStrategy's stock price is rising and it recently became one of the top 100 publicly traded US companies. However, NASDAQ must approve listing.

As a publicly traded company, Nasdaq has made limited entries into the crypto industry in recent years. Last year, the SEC halted its plans to launch a crypto security business, and the exchange has not officially discussed relaunching.

In August, BlackRock eased its efforts to trade options on the Ethereum ETF. Beyond that, however, Nasdaq has been quiet on the crypto front.

Meanwhile, James Seifert agreed with Balchunas' comments in another post. He pointed out that Nasdaq does not allow financial companies to be included in the list and Microstrategy may technically qualify.

The company's fate is tied to Bitcoin's performance, and thus, it can be said to be a financial company. However, it is currently listed as a technology stock, and will not be reassessed until March.

“ICB dates are here. [Industry Classification Benchmark] Reassignment. Unless you've just started the process of classifying MicroStrategy as a financial stock… we think you should. “That's the main risk of not being included in my opinion,” Seifert said.

Sure, MicroStrategy is one of the biggest bitcoin whales in the world, but the company started out as a tech company. MicroStrategy is still the tech stock in Nasdaq's estimation, despite regularly investing large amounts of capital into Bitcoin, which has contributed to the stock market's 500% rise this year.

Ultimately, this is just a forecast, albeit one from two experienced ETF analysts. In any case, there are important time limits that must be considered. If MicroStrategy is entering the Nasdaq 100, the announcement will come over the weekend.