In a move that underscores the growing interplay between traditional equities and cryptocurrencies, MicroStrategy’s (NASDAQ:MSTR) shares surged nearly 7.4% on Monday in Frankfurt trading as the company prepared to join the Nasdaq 100.
The inclusion of the software company—better known recently for its enormous Bitcoin holdings—in the tech-heavy index is likely to intensify interest in both the firm’s stock and Bitcoin itself.
The Nasdaq 100, a $25.7 trillion benchmark tracking the largest non-financial companies on the Nasdaq exchange, will now include MicroStrategy’s unique approach to corporate treasury management.
The company holds approximately $44 billion worth of Bitcoin on its balance sheet, representing about 2% of the total supply of the world’s largest cryptocurrency.
MicroStrategy’s inclusion in the index could lead to significant new buying activity from funds and ETFs designed to mirror the Nasdaq 100.
Such increased demand may continue to drive the company’s stock price higher—an upward trajectory already propelled by this year’s bullish Bitcoin market.
MicroStrategy’s shares have skyrocketed by nearly 550% in 2023 alone, tracking closely with the cryptocurrency’s dramatic rise.
The company, under the leadership of co-founder and Bitcoin evangelist Michael Saylor, has more than doubled its Bitcoin holdings this year, using both equity and debt financing to fuel its acquisitions.
Since adopting Bitcoin as its primary treasury asset in 2020, MicroStrategy’s shares have returned a staggering 3,200%, underscoring the power of Saylor’s high-stakes strategy.