(Reuters) -MicroStrategy will likely be added to the tech-heavy Nasdaq-100 Index, the change operator mentioned on Friday, following a meteoric surge within the shares of the bitcoin purchaser.
The change comes into impact earlier than the market opens on Dec. 23, Nasdaq mentioned.
Inclusion within the index usually boosts the inventory’s worth, as exchange-traded funds trying to replicate the index’s efficiency purchase shares of the newly included agency.
Knowledge analytics agency Palantir Applied sciences (NASDAQ:PLTR) and Taser maker Axon Enterprise (NASDAQ:AXON) have been added to the Nasdaq-100 Index together with MicroStrategy. Gene-sequencing gear maker Illumina (NASDAQ:ILMN), AI server maker Tremendous Micro Pc (NASDAQ:SMCI) and vaccine maker Moderna (NASDAQ:MRNA) have been eliminated, Nasdaq mentioned.
MicroStrategy, an aggressive investor on the planet’s largest crypto asset, has seen its shares soar greater than six-fold this yr, taking its market worth to virtually $94 billion.
The corporate started shopping for and holding bitcoin in 2020 as income from its software program enterprise waned. It’s now the biggest company holder of the cryptocurrency.
Analysts have mentioned MicroStrategy’s choice to buy bitcoin to guard the worth of its reserve belongings has enhanced the attraction of its inventory, which tends to align with the efficiency of the cryptocurrency.
Bernstein analysts anticipate the market will probably set its sights on S&P 500 inclusion for MicroStrategy in 2025 following the Nasdaq-100 inclusion.
The brokerage additionally sees the corporate’s prospects persevering with to enhance subsequent yr, including it expects “extra visibility and recognition past recent ETF inflows,” on account of the Nasdaq-100 inclusion.
Bitcoin has rallied in current weeks as U.S. President-elect Donald Trump’s victory heightened the crypto sector’s hopes for relieving regulatory roadblocks. Earlier this month, the digital asset catapulted above $100,000 for the primary time.
“Administration has proven no indicators of slowing this (bitcoin-buying) down and are snug shopping for bitcoin within the $95K-$100K vary,” Bernstein analysts mentioned.
The corporate held roughly 423,650 bitcoins purchased for about $25.6 billion primarily based on the typical buy worth as of Dec. 8. The funding is value round $42.43 billion, primarily based on bitcoin’s earlier shut, in line with Reuters calculations.
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