Today, Bloomberg ETF analysts Eric Balchunas and James Seyffart announced that MicroStrategy (MSTR) is expected to join the Nasdaq 100 (QQQ) later this month, on December 23.
$MSTR will probably be added $QQQ on 23/12 (with announcement on 13/12). Moderna is likely to be restarted (symbolically). Below you will find the best estimate of additions/decreases via @JSeyff. Probably a weight of 0.47% (40th largest importance). There are $550 billion worth of ETFs that track the index. S&P 500 likely to add next year. pic.twitter.com/rmTavtvWQL
— Eric Balchunas (@EricBalchunas) December 10, 2024
“MicroStrategy is likely to join the Nasdaq 100 Index on December 23, and we expect net purchases of at least $2.1 billion in shares by ETFs to follow, representing approximately 20% of daily volume,” said Seyffart. explained. “Entering the S&P 500 will be more difficult due to a lack of profits, although a change in accounting rules around Bitcoin valuations could make MicroStrategy eligible in 2025.”
A net purchase of $2.1 billion would be an additional boost for MSTR, which has already outperformed most major stocks this year as well as bitcoin – up 450% year-to-date at the time of writing. MSTR, powered by its ruthless bitcoin acquisition strategy, has seen its shares soar to a new all-time high this year for the first time since March 10, 2000.
MSTR has already done that bought more than 170,000 bitcoin since announcing its plans to raise $42 billion to buy more BTC in late October.
Balchunas stated that the official announcement of MSTR being added to QQQ is expected to take place on Friday, December 13.
“Again, this is our best estimate of what will happen,” Balchunas said concluded. “We don’t work at Nasdaq. FYI!”