The stock of software developer turned Bitcoin (BTC) acquirer MicroStrategy (MSTR) is being added to the Nasdaq 100 index.
The Nasdaq 100 is an index comprised of the largest non-financial companies in the technology-laden Nasdaq Composite index.
Being added to the Nasdaq 100 is likely to increase demand for MicroStrategy’s stock that has risen sharply this year alongside the price of Bitcoin.
The addition to the Nasdaq 100 means that exchange-traded funds (ETFs), including the highly popular Invesco QQQ Trust that has $325 billion U.S. in assets, will become automatic buyers of MicroStrategy’s stock as well.
The addition to the Nasdaq 100 index takes effect on Dec. 23 of this year.
MicroStrategy was widely expected to be added to the index amid its annual rebalancing to close out the calendar year.
Next, investors hope that MicroStrategy’s stock is added to the benchmark S&P 500 index.
The Nasdaq 100 changes its constitution annually. The companies selected for inclusion are based largely on market capitalization rankings.
MicroStrategy originally sold enterprise software but has now morphed to become the largest corporate owner of Bitcoin in the world. It currently owns 423,650 Bitcoins.
The company now has a market capitalization of $90 billion U.S. despite having less than $500 million U.S. in revenue over its previous four quarters.
Palantir Technologies (PLTR) and Axon Enterprise (AXON) are also joining the Nasdaq 100 on Dec. 23.
The stocks of Illumina (ILMN), Moderna (MRNA), and Super Micro Computer (SMCI) are being removed from the index.
MicroStrategy’s stock has risen 496% this year and is currently trading at $408.67 U.S. per share.
