MicroStrategy’s transformation from a software company to a bitcoin powerhouse hit a new milestone Friday, as Nasdaq announced it will join the flagship Nasdaq-100 index on Dec. 23.
The addition will require purchases from ETFs that track the index, including the $328 billion Invesco QQQ Trust (QQQ), according to Nasdaq’s announcement. The move comes as MicroStrategy continues to expand its bitcoin holdings.
“MicroStrategy over time is going to play a role in financial security,” Fundstrat’s Tom Lee said at Bloomberg’s ETFs in Depth conference last week. Lee said that while some investors remain hesitant about bitcoin exposure, MicroStrategy’s scale makes it “an important vector” for institutional adoption.
According to a Monday Securities and Exchange Commission filing, MicroStrategy purchased approximately 15,350 bitcoins between Dec. 9 and Dec. 15 for about $1.5 billion, at an average price of $100,386 per bitcoin. The company now holds approximately 439,000 bitcoins acquired at an aggregate purchase price of $27.1 billion and an average price of $61,725 per bitcoin.
Lee, whose Fundstrat Granny Shots US Large Cap ETF (GRNY) has gathered $626 million since its November launch, said MicroStrategy could be added to the fund once it joins the Nasdaq-100.
“It really fits into some of the important themes that we see,” Lee said at the conference, noting the company’s potential role in financial security through its bitcoin holdings.
Palantir Technologies and Axon Enterprise will also join the Nasdaq-100 index, while Illumina, Super Micro Computer, and Moderna will be removed, according to Nasdaq’s announcement. The change reflects the index’s annual reconstitution, which is based on market capitalization rankings as of November’s final trading day.
MicroStrategy’s shares rose 4.5% Monday afternoon following Friday’s announcement, with the $2.2 billion Defiance Daily Target 2X Long MSTR ETF (MSTX) gaining 8.3%. The stock has risen more than sixfold year-to-date as bitcoin hit a new all-time high of $106,488 Sunday, according to CoinMarketCap data.
