MicroStrategy joins Nasdaq-100 ranks, but its stay could get cut short

3 weeks ago 12

MicroStrategy was accepted into the Nasdaq-100 and begins trading arsenic portion of the scale connected December 23.
Its $42B Bitcoin holdings could reclassify MicroStrategy arsenic a fiscal company.
It volition apt debut up of peers similar CrowdStrike and Intel.

MicroStrategy has officially secured a spot successful the Nasdaq-100 Index, ending uncertainty implicit whether the institution would qualify.

Effective December 23, MicroStrategy’s inclusion successful the Nasdaq-100 volition adhd it to index-tracking funds similar QQQ, an exchange-traded money with implicit $250 cardinal successful assets and vulnerability to millions of retail and organization investors.

However, the company’s inclusion whitethorn beryllium short-lived owed to a looming classification review.

The Nasdaq-100 includes the 100 largest non-financial companies connected the exchange.

For now, MicroStrategy, with its banal ticker MSTR, is classified arsenic a exertion steadfast based connected its gross from analytics software.

But its $42 cardinal Bitcoin holdings — cardinal to Chair Michael Saylor’s strategy — could pb to reclassification arsenic a fiscal institution during the adjacent manufacture benchmark reappraisal successful March.

If that happens, MSTR could beryllium promptly removed from the index, arsenic fiscal firms are excluded.

“If the speech considers Bitcoin a fiscal instrument, it would marque it challenging for MSTR,” Joe Nardini, caput of concern banking astatine B. Riley Securities told DL News. “If they bargain the statement that Bitcoin is truly software, past they person a chance.”

Bloomberg Intelligence expert James Seyffart explained that the classification strategy hinges connected gross sources.

The manufacture classification benchmark is “based connected a company’s gross source; for MicroStrategy, that’s tech for now,” Seyffart noted.

He added that March’s reappraisal could inactive bring changes.

With a marketplace headdress of astir $98 billion, MicroStrategy should debut astir #40 successful the Nasdaq-100 rankings, somewhat up of peers similar CrowdStrike and Intel.