Key Points
- MicroStrategy Incorporated (NASDAQ: MSTR) will join the Nasdaq-100 Index effective December 23, 2024, marking one of three additions to the widely-tracked benchmark index.
- The annual reconstitution removes three companies from the index – Illumina, Super Micro Computer, and Moderna – while adding Palantir Technologies, MicroStrategy, and Axon Enterprise.
Major Index Addition Reflects Company’s Growth
In a significant development for MicroStrategy Incorporated (NASDAQ: MSTR), the company has earned a position in the prestigious Nasdaq-100 Index, which tracks the 100 largest non-financial companies listed on the Nasdaq exchange. The announcement comes at a particularly notable time for the company, which recently completed one of its largest bitcoin acquisitions to date, purchasing 15,400 BTC for approximately $1.5 billion between November 25 and December 1.
Trading and Investment Impact
The inclusion in the Nasdaq-100 Index represents a notable milestone for MicroStrategy, as the company will now be included in the Invesco QQQ Trust (QQQ), which aims to track the performance of the Nasdaq-100 Index. The change will become effective prior to market open on Monday, December 23, 2024, coinciding with the quadruple witch expiration Friday of the quarter.
Corporate Strategy and Growth
MicroStrategy’s addition to the index comes as the company has significantly expanded its bitcoin holdings to approximately 402,100 BTC, acquired at an average purchase price of $58,263 per bitcoin. The company has demonstrated its commitment to its bitcoin strategy by raising $1.48 billion through stock sales to fund its most recent purchase, with considerable capacity remaining for future share issuance under its ATM facility.
Historical Context
The Nasdaq-100 Index, which dates back to January 1985, serves as a benchmark for various financial products, including options, futures, and funds. The index has been a key barometer for the performance of major non-financial companies listed on the Nasdaq Stock Market for nearly 40 years, making this inclusion a significant achievement for MicroStrategy in the traditional financial markets.
