MicroStrategy secures Nasdaq-100 inclusion after bitcoin-fueled stock surge (updated)

Axon Enterprise

14/12/2024 02:13

(Adds details from Nasdaq statement in paragraph 4)
       Dec 13 (Reuters) - MicroStrategy  MSTR.O  will be added
to the tech-heavy Nasdaq-100 Index, the exchange operator said
on Friday, following a meteoric surge in the shares of the
bitcoin  BTC=  buyer.
    The change comes into effect before the market opens on Dec.
23, Nasdaq said.
    Inclusion in the index typically boosts the stock's price,
as exchange-traded funds looking to replicate the index's
performance buy shares of the newly included firm.
    Data analytics firm Palantir Technologies  PLTR.O  and Taser
maker Axon Enterprise  AXON.O  were added to the Nasdaq-100
Index along with MicroStrategy. Gene-sequencing equipment maker
Illumina  ILMN.O , AI server maker Super Micro Computer  SMCI.O 
and vaccine maker Moderna  MRNA.O  were removed, Nasdaq said.
    MicroStrategy, an aggressive investor in the world's largest
crypto asset, has seen its shares soar more than six-fold this
year, taking its market value to almost $94 billion.
    The company began buying and holding bitcoin in 2020 as
revenue from its software business waned. It is now the largest
corporate holder of the cryptocurrency.
    Analysts have said MicroStrategy's decision to purchase
bitcoin to protect the value of its reserve assets has enhanced
the appeal of its stock, which tends to align with the
performance of the cryptocurrency.
    Bernstein analysts expect the market will likely set its
sights on S&P 500 inclusion for MicroStrategy in 2025 following
the Nasdaq-100 inclusion.
    The brokerage also sees the company's prospects continuing
to improve next year, adding it expects "more visibility and
recognition beyond fresh ETF inflows," as a result of the
Nasdaq-100 inclusion.
    Bitcoin has rallied in recent weeks as U.S. President-elect
Donald Trump's victory heightened the crypto sector's hopes for
easing regulatory roadblocks. Earlier this month, the digital
asset catapulted above $100,000 for the first time.
    "Management has shown no signs of slowing this
(bitcoin-buying) down and are comfortable buying bitcoin in the
$95K-$100K range," Bernstein analysts said.
    The company held roughly 423,650 bitcoins bought for about
$25.6 billion based on the average purchase price as of Dec. 8.
The investment is worth around $42.43 billion, based on
bitcoin's previous close, according to Reuters calculations.

 (Reporting by Manya Saini and Rishabh Jaiswal in Bengaluru;
Editing by Pooja Desai, Sam Holmes and William Mallard)
 ((rishabh.jaiswal@thomsonreuters.com;))