Today, Bloomberg ETF analysts Eric Balchunas and James Seyffart announced that MicroStrategy (MSTR) is expected to enter the Nasdaq 100 (QQQ) later this month, on December 23.
$MSTR is likely to be added to $QQQ on 12/23 (with announcement available on 12/13). Moderna is likely to be uprooted (symbolic). Below is the best estimate of additions/deletions via @JSeyff. Probably a 0.47% weighting (40th largest share). There are $550 billion in ETFs that track the index. The S&P 500 adds next year’s probability. pic.twitter.com/rmTavtvWQL
– Eric Balchunas (@EricBalchunas) December 10, 2024
“MicroStrategy is likely to enter the Nasdaq 100 index on December 23, and we expect net purchases of at least $2.1 billion in shares by ETFs to follow, equivalent to approximately 20% of daily volume.” said Seyffart. explained. “Joining the S&P 500 will be more difficult due to the lack of earnings, although a change in accounting rules around Bitcoin valuations could make MicroStrategy eligible in 2025.”
The $2.1 billion net purchase would be an additional boost for MSTR, which has already outperformed most major stocks and also Bitcoin this year – up 450% year-to-date at the time of writing. . MSTR, fueled by its relentless 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 acquired more than 170,000 bitcoins since announcing plans to raise $42 billion to buy more BTC at the end of October.
Balchunas stated that the official announcement of MSTR’s addition to QQQ is expected to occur this Friday, December 13.
“Again, this is our best estimate of what will happen,” Balchunas concluded. “We don’t work at Nasdaq. FYI!
