MicroStrategy Joins Nasdaq-100 and Buys $1.5B in Bitcoin: Shares Climb on Dual Milestones
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After Nasdaq's announcement of MicroStrategy (NASDAQ:MSTR) joining the Nasdaq-100 index, Monday premarket trading saw MicroStrategy's shares rising over 3%.
Rebalanced annually, the Nasdaq-100 index comprises companies rated by market capitalization as of November's last trading day. Furthermore eligible equities have to satisfy minimum free-floating share counts and meet liquidity criteria. MicroStrategy's inclusion places company next to top tech-heavyweights, therefore confirming its function as a proxy for Bitcoin (BTC-USD) exposure.
MicroStrategy separately revealed the purchase of 15,350 Bitcoin for about $1.5 billion at an average price of $100,386 each coin. This most recent acquisition strengthens the company's position as the biggest corporate holder of Bitcoin, raising its overall ownership to 439,000 Bitcoin. The founder and chairman of the firm, Michael Saylor, posted the news Monday on Xformerly Twitter. Monday saw notable movement for Bitcoin, which momentarily surged beyond $106,000 before falling to $104,191. The surge in cryptocurrencies comes before the expected interest rate decision by the Federal Reserve this week, therefore impacting risk assets such Bitcoin.
The twin announcements of MicroStrategya significant Bitcoin purchase and Nasdaq-100 inclusionhighlight its continuous strategic emphasis on cryptocurrencies investments and help to establish its profile among the tech-heavy index. Its important to note that the MSTR stock is up a whopping 547% YTD and over 188% in just the past three months.
This article first appeared on GuruFocus.