Important points
MicroStrategy will join the Nasdaq 100 index, with an official announcement scheduled for December 13th. With MicroStrategy's inclusion in the Nasdaq 100 index, purchases of ETF shares could reach $2.1 billion.
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MicroStrategy is scheduled to join the Nasdaq 100 Index on December 23rd, with an official announcement scheduled for this Friday, December 13th.
The Nasdaq 100-tracking ETF is expected to buy $2.1 billion worth of MicroStrategy stock, about 20% of the company's daily trading volume, according to Bloomberg ETF analyst James Seifert.
James Seifert Analysis
The company is likely to have a 0.47% weight in the Nasdaq 100 index, making it the index's 40th largest holding, according to ETF analyst Eric Balchunas.
Seyffart suggested that although joining the Nasdaq 100 is imminent, MicroStrategy's lack of profitability will make its inclusion in the S&P 500 more difficult.
However, due to upcoming changes to accounting rules related to Bitcoin valuation, the company could qualify for inclusion in the S&P 500 in 2025.
This development comes as MicroStrategy continues its aggressive Bitcoin acquisition strategy.
Just yesterday, the company announced that it would purchase 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, equivalent to approximately $42 billion.
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