Nasdaq Announces MicroStrategy’s Inclusion in Nasdaq-100, What’s Next?
Key receivers
MicroStrategy, Palantir Technologies and Axon Enterprises will join the Nasdaq-100 on December 23. Microstrategy inclusion is expected to attract significant buying activity from ETFs that track the Nasdaq-100.
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The Nasdaq-100 index will welcome MicroStrategy, Palantir Technologies and Axon Enterprises as new members before the market opens on Dec. 23, Nasdaq announced Friday at its annual rebuild.
The three companies replace Illumina, Super Microcomputer and Moderna in the annual recap of the index, which is made up of the 100 largest non-financial companies listed on the Nasdaq Stock Market.
With a market value of $102 billion as of December 13, MicroStrategy is set to rank 40th on the Nasdaq-100.
By entering the Nasdaq-100, MicroStrategy stands to pull about $2.1 billion from ETFs that manage about $451 billion in assets that directly track index data, Bloomberg ETF analyst Eric Balchunas reiterated in a post following the Nasdaq announcement.
He added that the $2.1 billion acquisition estimate may be conservative because it does not include separately managed accounts, closed-end funds and active strategies.
This weighting equates to $2.1b bought through all ETFs that track a combined index of $451b. We didn't include SMAs or CITs or any active strategies so it could be a bit more when all is said and done. @jessef
— Eric Balchunas (@EricBalchunas) December 14, 2024
This capital inflow is predicted to increase the micro-strategy's share price and increase market visibility. Shares will see price increases after being included in the Nasdaq-100.
Bernstein analysts project that shares of Project MicroStrategy could reach $600, driven by expected capital inflows into the index-tracking investment fund once it is included in the index.
Inclusion of the Nasdaq-100 to increase the purchasing power of micro-strategy bitcoin
Microstrategy has established itself as a major player in the Bitcoin market with huge holdings. The company's inclusion in the Nasdaq-100 accelerates its goal of amassing $42 billion worth of bitcoins over the next three years.
As MicroStrategy's stock price increases due to increased demand, the company will have It is greater Financial volatility to continue its aggressive Bitcoin acquisition strategy. The Michael Saylor-led company currently holds approximately 423,650 bitcoins, worth around $42 billion. The company has consistently expressed its desire to further increase its Bitcoin holdings, even at higher prices.
Microstrategy Aggressive Bitcoin Investment makes the stock a proxy for Bitcoin. This means that owning MicroStrategy shares gives investors indirect exposure to the Bitcoin market.
Bitcoin has taken off. a bit Following the announcement of Nasdaq. It is now trading at over $102,000 million, reflecting a 2.5% increase in the last 24 hours, according to CoinGecko.
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