Key Takeaways
- MicroStrategy, Palantir Applied sciences, and Axon Enterprise will be part of the Nasdaq-100 on December 23.
- MicroStrategy’s inclusion is predicted to draw important shopping for exercise from ETFs monitoring the Nasdaq-100.
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The Nasdaq-100 Index will welcome MicroStrategy, Palantir Applied sciences, and Axon Enterprise as new members earlier than market open on December 23, as introduced by Nasdaq throughout its annual reconstitution on Friday.
The three corporations will substitute Illumina, Tremendous Micro Laptop, and Moderna within the annual reconstitution of the index, which contains 100 of the biggest non-financial corporations listed on The Nasdaq Inventory Market.
With a market worth of $102 billion as of December 13, MicroStrategy is about to rank fortieth on the Nasdaq-100.
Coming into the Nasdaq-100, MicroStrategy stands to draw roughly $2.1 billion from ETFs that straight observe the index, which collectively handle round $451 billion in property, Bloomberg ETF analyst Eric Balchunas reiterated in a publish following Nasdaq’s announcement.
He added that the $2.1 billion shopping for estimate could be conservative because it excludes individually managed accounts, closed-end funds, and energetic methods.
This weighting equates to about $2.1b of shopping for by way of all of the ETFs that observe the index which have $451b collectively. We didn’t embrace SMAs or CITs or any energetic methods so it may very well be somewhat extra when all is alleged and finished. @JSeyff
— Eric Balchunas (@EricBalchunas) December 14, 2024
This inflow of capital is projected to drive up MicroStrategy’s inventory worth and improve its market visibility. Shares sometimes see an increase in worth following their inclusion within the Nasdaq-100.
Bernstein analysts venture MicroStrategy shares might attain $600 following its inclusion within the index, pushed by the anticipated capital influx from index-tracking funding funds.
Nasdaq-100 inclusion to spice up MicroStrategy’s Bitcoin shopping for energy
MicroStrategy has established itself as a significant participant within the Bitcoin market via its big holdings. The corporate’s inclusion within the Nasdaq-100 will probably speed up its formidable aim of accumulating $42 billion price of Bitcoin over the subsequent three years.
As MicroStrategy’s inventory worth rises as a consequence of elevated demand, the corporate can have higher monetary flexibility to proceed its aggressive Bitcoin acquisition technique. Michael Saylor-led firm presently holds roughly 423,650 Bitcoin, valued at round $42 billion. The corporate has persistently expressed its intent to additional improve its Bitcoin holdings, even at larger costs.
MicroStrategy’s aggressive Bitcoin funding makes its inventory a proxy for Bitcoin. Because of this proudly owning MicroStrategy shares gives traders with oblique publicity to the Bitcoin market.
Bitcoin was up barely following Nasdaq’s announcement. It’s now buying and selling above $102,000 million, reflecting a 2.5% improve within the final 24 hours, per CoinGecko.
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