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Eid celebrations took place in the past few days. But the week also saw MicroStrategy become part of the Nasdaq 100 index.
While some believed this would give the company's stock price a short-term upside, this has not been the case so far. As of 1pm EST, MSTR's stock price is down 22% since the market open on December 16 (after index inclusion news late the previous Friday).
Year-end profit taking (MSTR up ~380% in 2024) and recent declines in BTC price are likely contributing to the recent decline in MicroStrategy prices.
But the bigger picture? Analysts point out that the importance of MSTR's inclusion in the index stems from the huge amount of money that is allocated to the components of the Nasdaq 100 Index - namely Invesco's QQQ, an ETF that manages $325 billion in assets.
“Most importantly, it's acceptance,” said Dan Weiskopf, co-portfolio manager of Amplify's BLOK ETF. He told me Last week. "It's institutional adoption. It's an example of Michael Saylor." strategy a jobhonestly."
The question for 2025 is whether MSTR can also take on the S&P 500. Larger than the QQQ, the SPDR S&P 500 ETF (SPY) — with $636 billion in assets — invests in companies within that index.
Weiskopf described this possibility next year as “possible,” but believes it is inevitable.
Benchmark's Mark Palmer noted that while MicroStrategy easily meets the market cap and trading volume minimums, it needs positive earnings for the most recent quarter and positive earnings combined for the last four quarters.
Palmer added that MSTR's plan to adopt new Financial Accounting Standards Board guidance on how to account for BTC on the balance sheet will put it in a position to start reporting positive earnings as soon as the first quarter.
People are clearly noticing the trend of more companies Bitcoin contract Such as treasury assets. Just ask asset manager Bitwise, which yesterday Suggested Bitcoin Standard Corporation ETF.
The planned offering will invest in companies with a market capitalization of more than $100 million and that hold at least 1,000 bitcoins in their corporate treasury.
MSTR clearly fits these criteria (444,262 BTC). So do a group of Biggest Bitcoin minerssuch as Marathon Digital (44,394 BTC as of December 18), Hut 8 (10,096 BTC), Riot Platforms (17,429 BTC) and CleanSpark (9,297 BTC).
Elsewhere, MetaPlanet open She purchased approximately 620 Bitcoin on Monday, bringing her total holdings to about 1,762 Bitcoin.
Others – like KULR Technology Group, with the initial He buys From 217 BTC yesterday - working its way up.
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