MicroStrategy, the business intelligence company known for its substantial bitcoin holdings, will be added to the prestigious NASDAQ-100 index and the widely-traded Invesco QQQ Trust ETF on December 23, 2023, as part of NASDAQ's annual rebalancing.
The announcement drove MicroStrategy's stock price up by over 3% on Monday, continuing the company's remarkable performance in 2023. The stock has surged 547% year-to-date, substantially outperforming the broader market as represented by the S&P 500's 26.9% gain.
The inclusion criteria for the NASDAQ-100 index primarily considers market capitalization rankings as of November's final trading day, along with specific requirements for stock liquidity and free-floating shares. MicroStrategy's addition to the index is expected to attract passive investment inflows through funds tracking the NASDAQ-100.
Adding to the momentum, MicroStrategy's founder and chairman Michael Saylor announced on Monday that the company acquired an additional 15,350 bitcoin for approximately $1.5 billion, at an average price of $100,386 per bitcoin. This latest purchase brings the company's total bitcoin holdings to 439,000 coins.
Bernstein analyst Gautam Chhugani noted that MicroStrategy's bitcoin acquisition strategy stands unmatched in corporate America, making it the largest corporate bitcoin holder with approximately 2% of the total supply, valued at $44 billion. The analyst also highlighted that the NASDAQ-100 inclusion would enhance the company's market liquidity and strengthen its ability to continue its bitcoin acquisition program.
The news comes as bitcoin trades near $103,800, reflecting the ongoing cryptocurrency market rally that has helped fuel MicroStrategy's extraordinary stock performance throughout the year.