With the Bitcoin rally, MicroStrategy joins Nasdaq-100, making for a major corporate finance and cryptocurrency moment. This milestone is also a testimony to Bitcoin’s increasing acceptance as a true asset class.

That new institutional investment tactic is the company’s bold strategy of spending big on Bitcoin, making their way to spend big on Bitcoin. Read more about MicroStrategy becoming part of Nasdaq-100

Key-Takeaways:

• Pointing to the rise of cryptocurrency as a real asset class, MicroStrategy’s Bitcoin acquisitions are now worth $42.43 billion.
• The fact that Bitcoin’s inclusion on the Nasdaq-100 demonstrates growing confidence in Bitcoin and that unconventional strategies can become a big deal.
• Although reclassification as a financial firm is possible, the success of MicroStrategy indicates growing ubiquity of Bitcoin in institutional finance, with continued growth to come.

Bitcoin’s Strategy for Investment 

Under a new leader, Michael Saylor, MicroStrategy took an aggressive cryptocurrency acquisition strategy. The company has been buying Bitcoin continuously since 2020, reshaping the way money management corporations handle funds.

About 423,650 bitcoins were bought by MicroStrategy for $25.6 billion. That’s a lot of Bitcoin for a company. Their holdings are currently valued at around $42.43 billion.

This was a very smart approach, say analysts. With Bitcoin proving itself as a suitable corporate asset, MicroStrategy joins the Nasdaq-100 after the Bitcoin rally. It breaks with traditional financial models and attracts lots of market attention.

In 2024, MicroStrategy’s stock has more than doubled; its market value now sits near $94 billion. Including cryptocurrency-linked investment strategies in the Nasdaq-100 validates the growing potential of the cryptocurrency industry.

Exchange-traded funds attempting to track the index often add a stock to the Nasdaq 100 and cause the company’s price to rise. This inclusion also illustrates the growing mainstream embrace of Bitcoin-related corporate strategies.

Bernstein analysts, however, expect more potential, and they predict the S&P 500 inclusion could come in 2025. Bitcoin was something unprecedented and created unprecedented visibility and recognition in the financial ecosystem as MicroStrategy joins Nasdaq-100.

The move happens as Bitcoin rallies to new highs, achieving $100,000 earlier this month. Now, MicroStrategy joins Nasdaq-100 as cryptocurrency continues to earn mainstream institutional acceptance.

The company will be in a position to reap billions in passive investment as Nasdaq-100 ETFs have assets in excess of $550 billion. It also strengthens Bitcoin’s place in institutional finance.

This, says James van Straten, a senior analyst, could be potentially the biggest second cryptocurrency of 2024 (behind the launch of US spot-linked ETFs). MicroStrategy’s presence in the Nasdaq 100 could set off a huge ‘flywheel effect’ of inflows to crypto.

Potential Classification Challenges

The inclusion might be temporary, however, as analysts James Seyffart warn that MicroStrategy could be reclassified as a financial firm in March. That’s because its value is almost entirely based on Bitcoin holdings.

My thoughts on MicroStrategy getting reclassified as a financials stock on the back of our prediction that Nasdaq will likely announce it’s entry into the Nasdaq 100

(The rules indicate $MSTR *should* be added in our view but its not official until Nasdaq announces it on Friday) pic.twitter.com/NCj96owSw5

— James Seyffart (@JSeyff) December 11, 2024

 Even Michael Saylor has talked about making the company into a ‘Bitcoin bank,’ blurring the lines between a standard corporation and completely merging into crypto. It could be the beginning of a company that will essentially turn into a financial sector player.

MicroStrategy joining Nasdaq-100 shows the company’s creativity around corporate treasury and digital asset management, even if there could be challenges.

It is a shift towards recognizing cryptocurrency as a proper asset class, as it will be included in the Nasdaq 100 group of stocks. This demonstrates as well that unusual strategies can generate massive market recognition.

On the heels of their raucous tribe stake before the value crash, management is still showing no sign that they will let up on their cryptocurrency buying, even as prices range from approximately $96,000 to $100,000 per bitcoin.

Conclusion

As MicroStrategy joins Nasdaq-100, the cryptocurrency integrates pioneering force with MicroStrategy. This is not just a corporate milestone but potentially a market turning point on how institutions can and want to use digital assets in their financial strategy.

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