MicroStrategy Shares Surge on Nasdaq-100 Inclusion

Investing.com — MicroStrategy Incorporated (NASDAQ: MSTR) shares surged 6% in premarket trading Monday after the Nasdaq announced it would be added to the Nasdaq-100 index.

This inclusion follows a significant increase in the shares of the Bitcoin-focused company, effective before the market opens on December 23. Being added to the index typically boosts a stock's price, as funds tracking the Nasdaq-100 often purchase shares of newly included firms to maintain the index's composition.

Alongside MicroStrategy, Palantir Technologies (NASDAQ: PLTR) and Axon Enterprise (NASDAQ: AXON) will also join the index. Conversely, Illumina (NASDAQ: ILMN), Super Micro Computer (NASDAQ: SMCI), and Moderna (NASDAQ: MRNA) are set to be removed.

MicroStrategy has aggressively invested in Bitcoin, witnessing its stock price skyrocket over sixfold this year, raising its market cap to nearly $94 billion. In 2020, the company shifted its strategy to use Bitcoin as a reserve asset due to declining revenue in its software business, becoming the largest corporate owner of the cryptocurrency.

Analysts indicate that MicroStrategy's pivot to Bitcoin has enhanced its stock's attractiveness, as it closely mirrors the cryptocurrency's fluctuations. Bernstein analysts predict that this Nasdaq-100 inclusion could lead to potential S&P 500 inclusion by 2025 and foresee improved prospects for the company next year, highlighting increased visibility and recognition alongside potential new ETF inflows.

Recent surges in Bitcoin, attributed to optimism in the crypto sector following US President-elect Donald Trump's victory, have raised expectations for reduced regulatory hurdles, with the cryptocurrency surpassing the $100,000 milestone earlier this month.