MicroStrategy, a software company known for its aggressive investment in Bitcoin, has seen its shares skyrocket nearly 500% this year, positioning it as a strong contender for inclusion in the Nasdaq 100 index. With a market capitalization of $90 billion and a significant Bitcoin holding valued at approximately $42 billion, the company is poised for potential gains as the index undergoes its annual reshuffle this week.
MicroStrategy's remarkable ascent in the stock market can be attributed to its strategic decision to adopt Bitcoin as its primary treasury reserve asset in 2020. This move came as revenue from its software business began to decline, prompting co-founder Michael Saylor to pivot towards cryptocurrency investments.
The company's Bitcoin holdings, which account for over 2% of the total Bitcoin supply, have significantly contributed to its market value. The recent surge in Bitcoin prices, which recently crossed the $100,000 mark for the first time, has further fueled investor interest in MicroStrategy.
To qualify for inclusion in the Nasdaq 100 index, a stock must meet specific criteria:
Given its current market capitalization and trading volume, MicroStrategy appears to meet these requirements, making it a likely candidate for the upcoming reshuffle.
If MicroStrategy is included in the Nasdaq 100, it could have several implications:
MicroStrategy is not the only company vying for a spot in the Nasdaq 100. Data analytics firm Palantir, which has seen its market value quadruple to $160 billion this year, is also a strong contender. Conversely, companies like Super Micro Computer may face exclusion due to delayed financial reporting, raising concerns about their compliance with Nasdaq's listing standards.
As MicroStrategy continues to ride the wave of Bitcoin's popularity, its potential inclusion in the Nasdaq 100 could mark a significant milestone for the company. With the reshuffle announcement just around the corner, investors and analysts alike are keenly watching to see if MicroStrategy will secure its place among the tech giants of the Nasdaq 100.
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