The US stock exchange Nasdaq today announced the results of the annual reconstitution of the Nasdaq-100 Index (Nasdaq: NDX®), which will take effect before the market opens on Monday, December 23, 2024. It highlights the inclusion of MicroStrategy, the company led by institutional bitcoiner Michael Saylor.
MicroStrategy was primarily known for its business intelligence and data analytics solutions. However, its stock market trajectory has changed drastically since 2020, when the company began a strategy of accumulating bitcoin (BTC) as part of its treasury reserves. Since then, the MSTR share has appreciated abysmally by almost 3,000%, going from being worth approximately $15 to reaching its all-time high and current price of $408 per share, as reflected by TradingView at the time of writing this note.
According to Bloomberg analyst Eric Balchunas, MicroStrategy would also be included in several ETFs that track the Nasdaq index, such as Invesco’s QQQ, which manages about $300 billion of its clients. In total, he estimates there is about $550 billion of potential exposure due to these ETFs.