MicroStrategy (MSTR) is set to join the Nasdaq-100 Index on December 23, 2024, following a significant surge in its stock price driven by substantial Bitcoin investments.

The Nasdaq-100 Index comprises 100 of the largest non-financial companies listed on the Nasdaq stock exchange. Inclusion in this index means that exchange-traded funds (ETFs) tracking the Nasdaq-100, such as the Invesco QQQ Trust (QQQ), will need to incorporate MicroStrategy’s stock into their portfolios. This inclusion is expected to lead to increased demand for MSTR shares, potentially boosting its stock price.

MicroStrategy’s significant Bitcoin holdings, approximately 423,650 bitcoins valued at around $42.43 billion, have been a major factor in its stock performance. The company’s strategy of leveraging its stock and bonds to invest in Bitcoin has attracted attention, though it carries associated risks.

In summary, MicroStrategy’s inclusion in the Nasdaq-100 Index will lead to its addition to ETFs like QQQ, potentially increasing demand for its shares and impacting its stock price.