Key Takeaways
MicroStrategy has joined the Nasdaq-100 index as a part of its annual reconstitution.
The inclusion permits index-tracking funds just like the Invesco QQQ Belief to achieve publicity to MicroStrategy and its Bitcoin holdings.
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MicroStrategy (MSTR), together with Palantir Applied sciences (PLTR) and Axon Enterprise (AXON), is formally a part of the Nasdaq-100 index forward of market opening on December 23, in accordance with information from Nasdaq. The three corporations will change Illumina Inc. (ILMN), Tremendous Micro Pc Inc. (SMCI), and Moderna Inc. (MRNA).
As of the newest information, MSTR entered on the 52th place, accounting for about 0.42% of the entire market capitalization of all corporations within the index, in accordance with information tracked by Slickcharts.
The addition comes as a part of the Nasdaq-100’s annual reconstitution. MicroStrategy, with a market capitalization of $88.6 billion in accordance with Yahoo Finance information, joins the index of the 100 largest non-financial securities listed on the Nasdaq inventory change.
Bloomberg ETF analyst James Seyffart beforehand predicted that the inclusion may result in an inflow of round $2.1 billion in shopping for exercise from ETFs that observe the Nasdaq-100.
The corporate’s inventory has surged roughly 476% this 12 months, with shares gaining momentum alongside Bitcoin’s value actions. MSTR inventory reached a document excessive of round $473 on November 20, when Bitcoin traded above $92,000.
The inclusion within the Nasdaq-100 would require index-tracking funds, together with the Invesco QQQ Belief (QQQ), to buy MicroStrategy shares. This offers QQQ traders oblique publicity to MicroStrategy and its Bitcoin holdings.
MSTR shares jumped 11.5% to shut at $364 final Friday, rallying with the broader US inventory market and offsetting what had been shaping up as a troublesome week, in accordance with Yahoo Finance.
International markets had been shaken by hawkish alerts from the Federal Reserve. Bitcoin briefly dipped beneath $93,000 on Friday earlier than recovering to above $96,000, per TradingView.
Regardless of Friday’s beneficial properties, the main indices nonetheless closed the week down. The S&P 500 fell about 2%, the Dow Jones Industrial Common roughly 2.3%, and the Nasdaq Composite round 1.8%.
Based on a Nasdaq report, whereas index inclusion usually results in elevated demand and better valuations, significantly within the brief time period, the anticipated advantages are sometimes priced in upon announcement moderately than the precise inclusion date.
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