MicroStrategy to join Nasdaq 100 with $2.1 billion in ETF share buying expected

MicroStrategy’s addition to the Nasdaq 100 on December 23 is expected to drive $2.1 billion in ETF share purchases, potentially bolstering its Bitcoin holdings.

Photo: Trung Phan

Key Takeaways

• MicroStrategy is set to join the Nasdaq 100 Index, with an official announcement expected on December 13.
• MicroStrategy’s Nasdaq 100 inclusion could drive $2.1 billion in ETF share buying.

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MicroStrategy is expected to join the Nasdaq 100 Index on December 23, with an official announcement scheduled for this Friday, December 13.

According to Bloomberg ETF analyst James Seyffart, ETFs tracking the Nasdaq 100 are expected to purchase $2.1 billion worth of MicroStrategy shares, representing about 20% of the company’s daily trading volume.

James Seyffart analysis

The company is also likely to have a 0.47% weight in the Nasdaq 100, becoming the 40th largest holding in the index, according to ETF analyst Eric Balchunas.

Seyffart suggested that while joining the Nasdaq 100 is imminent, inclusion in the S&P 500 will be more challenging due to MicroStrategy’s lack of profitability.

However, an upcoming change in accounting rules related to Bitcoin valuations could potentially make the company eligible for the S&P 500 in 2025.

This development comes as MicroStrategy continues its aggressive Bitcoin acquisition strategy.

Just yesterday, the firm announced the purchase of 21,550 BTC for $2.1 billion at an average price of $98,000 per Bitcoin.

This brings MicroStrategy’s total Bitcoin holdings to 423,650 BTC, valued at approximately $42 billion.

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