MicroStrategy, a prominent Bitcoin-acquiring company, is anticipated to join the Nasdaq 100 index on December 23, according to Bloomberg ETF analyst Eric Balchunas. In a post on X (formerly Twitter) dated December 11, Balchunas indicated that the official announcement is expected on December 13.
This potential inclusion follows the company’s issuance of additional financial bonds and senior notes to institutional investors in the United States, aimed at funding further Bitcoin acquisitions.
Balchunas also predicts that MicroStrategy (MSTR) could be added to the S&P 500 index by next year, although some analysts believe this milestone will be challenging to achieve in the near term.
“$MSTR is likely to be added to $QQQ on 12/23 (w/ announcement coming 12/13). Moderna likely to get boot (symbolic). Below is best guess of adds/drops. Likely a 0.47% weight (40th biggest holding). There’s $550b of ETFs tracking the index. S&P 500 add next yr prob,” Balchunas stated.
James Seyffart, another Bloomberg ETF analyst, supports the outlook, noting that MicroStrategy’s entry into the S&P 500 would likely follow its inclusion in the Nasdaq 100. Seyffart estimates that such a move could trigger net buying of at least $2.1 billion in MicroStrategy shares, equating to one-fourth of the stock’s daily trading volume, as ETFs adjust their holdings to align with the index.
Challenges and Opportunities
While analysts are optimistic about MicroStrategy’s trajectory, challenges remain. A key hurdle is the company’s lack of consistent profitability, which could complicate its inclusion in major indices.
However, a regulatory development may bolster the company’s standing. Last year, the Financial Accounting Standards Board (FASB) introduced its first accounting rule for cryptocurrencies, allowing companies to report crypto assets using fair value measurement methods. This change enables Bitcoin and other cryptocurrencies to be classified as asset classes on corporate balance sheets, potentially benefiting companies like MicroStrategy.
A Strategic Bet on Bitcoin
MicroStrategy’s continued focus on Bitcoin acquisition and its potential inclusion in leading stock indices underscore the company’s commitment to leveraging cryptocurrency as a core part of its strategy. The coming weeks will reveal whether these ambitious moves translate into broader market recognition.
