MicroStrategy is included in the Nasdaq 100 index, Bitcoin concept stocks enter the mainstream

On December 13, the Nasdaq officially announced the annual reorganization results of the Nasdaq 100 Index. Among them, MicroStrategy (MSTR), known for holding a large amount of Bitcoin, will be included in the index, becoming one of the 75 largest non-financial companies. This decision will significantly increase the Nasdaq 100 Index's exposure to Bitcoin, while also placing MSTR in the spotlight of billions of dollars in passive investments.

Currently, the Nasdaq-100 Index includes the largest non-financial companies listed on the Nasdaq stock exchange, featuring market-leading companies such as technology giants like Apple, Nvidia, Microsoft, Amazon, Meta, and Tesla.

Industry analysts believe that MicroStrategy's inclusion in the Nasdaq 100 Index could be the second biggest news after the U.S. listing of the Bitcoin spot ETF in 2024. This move will bring a new group of buyers for MSTR, especially as the company continues to dilute shareholders through market price issuances.

Experts estimate that MSTR's weight in the index could reach 0.47%, making it the 48th largest holding. This corresponds to approximately $2.1 billion in purchases through all ETFs tracking the index, with a total value of up to $451 billion. However, some analysts warn that MicroStrategy's inclusion in the index may only be temporary, as the company's value primarily comes from its Bitcoin holdings rather than its actual operating business. Therefore, the company may be reclassified as a financial company next March.

MicroStrategy began investing in Bitcoin in mid-2020 to hedge against inflation. The company initially made acquisitions using cash and later shifted to enhancing its purchasing power by issuing and selling stock and convertible bonds. As of November 8, 2024, MicroStrategy holds 423,650 Bitcoins, with a total purchase price of $25.6 billion and an average cost of $60,324 per coin. This strategy, along with the surge in Bitcoin's value, has helped MicroStrategy's stock price increase by over 2500% since August 2020.

MicroStrategy also introduced the concept of "BTC yield" to measure the effectiveness of its Bitcoin acquisition strategy. This metric reflects the percentage change in the number of Bitcoins owned by the company per share over a specific period. As of November 17, the company's year-to-date BTC yield reached 41.8%.

The restructuring of the Nasdaq 100 Index will take effect before the market opens on December 23. This change not only marks the further integration of cryptocurrency-related assets into the traditional financial system but also provides investors with a new indirect channel to access Bitcoin.