On Tuesday, shares of MicroStrategy, Inc. (NASDAQ:MSTR) saw a 3.3% increase as investors speculated on the company's potential inclusion in the Nasdaq 100 index. The boost in MicroStrategy's stock occurred even as Bitcoin, a significant asset on the company's balance sheet, experienced a 1% decline, trading at $96,685.
The movement of MicroStrategy's stock is tied to the upcoming annual rebalancing of the Nasdaq 100 index, which is set for December 13, 2024. The company's consideration for addition to the index is a nod to its substantial market presence, which has been bolstered by its assertive Bitcoin purchasing strategy.
Bloomberg Intelligence has identified MicroStrategy as one of the companies likely to be added to the Nasdaq 100 index. Other companies projected to join include Palantir (NASDAQ: NASDAQ:PLTR), Equinix (NASDAQ: NASDAQ:EQIX), and Axon (NASDAQ: AXON). These new entrants are expected to replace current index constituents Moderna (NASDAQ:MRNA), Illumina (NASDAQ: NASDAQ:ILMN), Super Micro Computer (NASDAQ: NASDAQ:SMCI), and Arm Holdings (NASDAQ: NASDAQ:ARM).
The rebalancing of the Nasdaq 100 is a routine process that reflects the changing dynamics and valuations within the market. The inclusion of MicroStrategy and the other mentioned companies would represent a significant milestone for these firms, acknowledging their growth and impact within their respective industries.
Shares of MicroStrategy are up nearly 500% year-to-date amid its aggressive Bitcoin strategy. The firm held 423,650 bitcoins as of December 8, 2024, worth an estimated $41 billion based on the current price levels.
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