MicroStrategy’s transformation from a software company to a bitcoin powerhouse reached a new milestone on Friday, when Nasdaq announced it will join the flagship Nasdaq-100 index on December 23.
The addition requires purchases of ETFs that track the index, including the $328 billion Invesco QQQ Trust (QQQ)said Nasdaq’s announcement. This move comes as MicroStrategy continues to expand its bitcoin holdings.
“MicroStrategy will play a role in financial security over time,” Fundstrat’s Tom Lee said at Bloomberg’s ETFs in Depth conference last week. Lee said that while some investors remain cautious about bitcoin exposure, MicroStrategy’s size makes it “an important vector” for institutional adoption.
According to a Securities and Exchange Commission filing Monday, MicroStrategy bought about 15,350 bitcoins for about $1.5 billion between Dec. 9 and Dec. 15, at an average price of $100,386 per bitcoin. The company now owns approximately 439,000 bitcoins acquired at a total purchase price of $27.1 billion and an average price of $61,725 per bitcoin.
Lee, whose Fundstrat Granny Shots US Large Cap ETF (GRNY) has raised $626 million since launching in November, said MicroStrategy could be added to the fund once it joins the Nasdaq-100.
“It really fits into some of the important themes that we’re seeing,” Lee said at the conference, noting the company’s potential role in financial security through its bitcoin holdings.
Palantir Technologies and Axon Enterprise will also join the Nasdaq-100 index, while Illumina, Super Micro Computer and Moderna will be removed, according to Nasdaq’s announcement. The change reflects the annual reconstruction of the index, which is based on the market capitalization rankings as of the last trading day of November.
Shares of MicroStrategy rose 4.5% Monday afternoon after Friday’s announcement, trading at $2.2 billion. Defiance Daily Target 2X Long MSTR ETF (MSTX) gain of 8.3%. The stock is up more than sixfold this year as bitcoin hit a new all-time high of $106,488 on Sunday, according to CoinMarketCap data.
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