MicroStrategy will be added to the high-tech Nasdaq 100 index on Friday after a rapid surge in stocks among Bitcoin buyers.
Nasdaq said the change took effect before the market opened.
Inclusion in an index usually raises the price of a stock as it seeks to replicate the performance of the index to buy stocks on exchange-traded funds.
Data analytics companies Palantir Technologies and Taser Maker Axon Enterprise are added to the NASDAQ-100 index along with MicroStrategy. Nasdaq said it removed the gene sequence device maker Illumina, AI server maker supercomputer and vaccine maker ModernA.
MicroStrategy is an active investor in the world’s largest crypto assets, with stocks soaring more than six times this year, with a market value of nearly $94 billion (approximately Rs 797,387 crore).
The company began buying and holding Bitcoin in 2020 as revenue from its software business weakened. Now, it is the largest company holder of cryptocurrencies.
Analysts say MicroStrategy’s decision to buy bitcoin to protect the value of its reserve assets has enhanced the attractiveness of its stock, which is often consistent with the performance of cryptocurrencies.
Bernstein analysts expect that the market may include the MicroStrategy S&P 500 S&P 500 S&P 500 in 2025 after the Nasdaq-100 is included.
The broker also believes that the company’s outlook will continue to improve next year due to the inclusion of the Nasdaq 100 and expects it to “more visibility and recognition beyond the inflow of fresh ETFs”.
The cryptocurrency sector’s hopes to alleviate regulatory barriers are strengthened by the victory of U.S. President-elect Donald Trump. Earlier this month, digital assets popped up for the first time above US$100,000 (about Rs 8.48 lakh).
“Management shows no signs of a reduction (buying bitcoin) and is buying bitcoin in $95,000 (about Rs 8.05 lakh) – $100,000 (about Rs 8.48 crore),” said Bernstein analyst.
The company has purchased approximately 423,650 bitcoins for USD 25.6 billion (approximately Rs 217,148 crore) based on the average purchase price ended December 8. The investment is worth approximately US$42.43 billion (based on Rs 359.905 crore), based on Rs 359.905 crore, according to Reuters’ calculations, Bitcoin’s previous closure.
©Thomson Reuters 2024
(This story has not been edited by Tech Word News’s staff and is automatically generated from the joint feed.)
