Bitcoin proxy shares surge as Nasdaq-100 index and 'QQQ' ETF add it.
After Nasdaq announced that the bitcoin proxy would be added to the Nasdaq-100 index, shares of were higher on Monday.
The stock last traded more than 5% higher in premarket trading.
Every year, Nasdaq rebalances its index, with the companies selected for inclusion primarily determined by their market cap rankings as of the final trading day in November. Additionally, these stocks must meet liquidity requirements and possess a sufficient number of free floating shares.
The index inclusion, which will take effect on Dec. 23, follows MicroStrategy's significant growth this year. By 2024, the stock has increased by 547%, surpassing the 26.9% increase, as the price of bitcoin reaches new highs. On the day, bitcoin last traded at $103,806.69, up only 0.99%.
For years, MicroStrategy has been accumulating bitcoin, making it a representative of the cryptocurrency. Currently, the company holds over 420,000 bitcoins.
MicroStrategy's inclusion in the popular index that tracks the Nasdaq-100 is likely to result in passive inflows for its stock, potentially providing another boost.
"Gautam Chhugani, a Bernstein analyst, stated on Monday that MSTR's Bitcoin buying program is unique and makes it the largest corporate owner of Bitcoin (equivalent to 2% of the supply, or $44Bn market value). Additionally, the inclusion of MSTR in the Nasdaq100 index will enhance its market liquidity, allowing it to expand its capital flywheel and Bitcoin buying program."
Markets
You might also like
- Delinquencies are on the rise while a record number of consumers are making minimum credit card payments.
- U.S. economy state weighs on little changed treasury yields.
- European markets predicted to sustain positive growth.
- Trump hints at imposing a 10% tariff on China starting in February.
- David Einhorn believes we are currently in the "Fartcoin" phase of the market cycle.