MicroStrategy Close to Joining Nasdaq 100 on Bitcoin Boost
- MicroStrategy May Join Nasdaq 100
- Bitcoin's impact on stock market valuation
- Important milestone for crypto companies
Amid the recent dynamism of the cryptocurrency market, MicroStrategy stands out, and could soon be part of the select group of the Nasdaq 100. This inclusion, which could replace Moderna, is expected to happen next Friday, with the official announcement scheduled for December 23. This milestone reinforces MicroStrategy's position as one of the largest publicly traded companies in the US.
Currently classified as a technology company, MicroStrategy has used this classification to circumvent limitations imposed on financial companies by Nasdaq. However, a possible reassessment of this classification is scheduled for March, which could represent an obstacle.
“While the company’s heavy investment in Bitcoin ties its performance to the cryptocurrency market, its status as a technology stock remains unchanged for now,” Seyffart points out.
With several Bitcoin purchases, MicroStrategy's stock has seen a massive 500% increase this year. Still considered a technology company by Nasdaq, this distinction allows it to meet the criteria for inclusion in the index, as long as no reclassification occurs before the stipulated deadline.
“If MicroStrategy is added to the Nasdaq 100, it will reflect its growing importance, especially as a pioneer in corporate adoption of Bitcoin,” Balchunas said. Seyffart agrees, noting that “reclassification risks are the main obstacle to the company’s inclusion.” The final decision is in Nasdaq’s hands, with an announcement expected by the end of the week.
MicroStrategy’s potential inclusion in the Nasdaq 100 would also underscore the exchange’s growing involvement in the cryptocurrency sector. BlackRock’s inclusion of Ethereum ETF options earlier this year is indicative of this trend. Adding MicroStrategy to the index could signal a greater openness to crypto-related companies.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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