Nasdaq Microstrategy is expected to announce its inclusion in the Nasdaq-100 today

Key receivers

Microstrategy may be included in the Nasdaq-100 index, pending classification as a technology company. If ETFs that track the Nasdaq-100 are included, they may need to buy microstrategy stocks that influence stock trading.

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Nasdaq is expected to announce its annual revision of the Nasdaq-100 index today, which could include several companies, including MicroStrategy.

According to Bloomberg ETF analyst James Seifert, MicroStrategy meets several criteria for inclusion in the Nasdaq-100, including being classified as a technology company based on revenue streams.

But Seifert said MicroStrategy may not be added because it could be reclassified as a financial stock. Nasdaq-100 does not include financial institutions such as banks and insurance companies.

Although MicroStrategy's software business is a small part of its overall value—the company's value is now largely tied to its Bitcoin holdings—it is still classified as a software company.

Although Seifert believes this process has not yet begun, industry classification benchmarks may classify microstrategies.

It is unclear whether this potential future reclassification will be considered in Nasdaq's decision. But technically, if MicroStrategy maintains its classification during the Nasdaq rebalancing announcement, it is more likely to be included.

The annual changes are expected to be announced this evening, specifically at 8 pm.

Implications for microstrategy

The Nasdaq-100 index includes the 100 largest non-financial companies listed on the Nasdaq stock exchange. This index includes companies from a variety of sectors, primarily technology, but also retail, healthcare and telecommunications.

As such, it serves as a key benchmark for investors seeking exposure to major US companies, particularly those looking for innovation and growth.

Many mutual funds and ETFs track the Nasdaq-100. Global ETFs that directly track the benchmark manage $451 billion in assets, according to Bloomberg, while the iShares QQQ Trust ( QQQ ) has about $329 billion.

Nasdaq-100 inclusion has a significant impact on micro-strategy visibility and stock prices due to increased interest in these investment funds.

When a company is added to the Nasdaq-100, ETFs that track this index are obligated to buy shares of that company. That said, if a microstrategy is added, ETFs like QQQ are obligated to buy the shares. Capital inflows from these ETFs greatly increase demand for the stock, often driving the stock price higher.

Bloomberg Intelligence estimates that MicroStrategy could see initial net share purchases of around $2.1 billion if it joins the Nasdaq-100 index.

Shares of MicroStrategy are trading above $400 after the market opened Friday, up 2.5% in the past 24 hours, according to Yahoo Finance data.

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