MicroStrategy Stock Soars 3.3% Amid Nasdaq 100 Inclusion Speculations

On Tuesday, MicroStrategy, Inc. (NASDAQ:MSTR) shares rose by 3.3% amid speculation regarding the company's potential inclusion in the Nasdaq 100 index. This increase in MicroStrategy's stock occurred despite a 1% drop in Bitcoin, a significant asset on the company's balance sheet, which was trading at $96,685.

The movement in MicroStrategy's stock is linked to the annual rebalance of the Nasdaq 100 index scheduled for December 13, 2024. The consideration of the company for inclusion in the index signifies a substantial market asset bolstered by its aggressive Bitcoin purchasing strategy.

Bloomberg Intelligence has identified MicroStrategy as one of the companies with a high likelihood of being added to the Nasdaq 100 index. Other companies expected to be added include Palantir (NASDAQ: PLTR), Equinix (NASDAQ: EQIX), and Axon (NASDAQ: AXON). These new entries are anticipated to replace existing index components such as Moderna, Illumina (NASDAQ: ILMN), Super Micro Computer (NASDAQ: SMCI), and Arm Holdings (NASDAQ: ARM).

The rebalancing of the Nasdaq 100 is a routine process reflecting changing dynamics and valuations in the market. The inclusion of MicroStrategy and the other mentioned companies will represent a significant milestone for these firms and acknowledge their growth and impact within their respective sectors.

MicroStrategy's shares have seen a rise of approximately 500% since the beginning of the year due to its aggressive Bitcoin strategy. As of December 8, 2024, the company held around 423,650 bitcoins valued at approximately $41 billion based on current price levels.