MicroStrategy Enters the Nasdaq 100 Index, Exposing Its Bitcoin Treasury to More Investors

The Nasdaq 100 index tracks the 100 largest companies on the Nasdaq exchange. The companies included are usually recipients of passive fund flows

MicroStrategy (NASDAQ:MSTR) stock price soared on Friday after the Nasdaq announced that it will be adding the company to the Nasdaq 100 index. The decision comes after a stellar year for MicroStrategy, with its stock price rising by over 500% year-to-date.

The Nasdaq 100 index tracks the 100 largest companies on the Nasdaq exchange. The companies included are usually recipients of passive fund flows from popular ETFs.

With a market capitalisation of $97.94 billion, MicroStrategy is the 40th largest company on the Nasdaq exchange, largely due to its massive Bitcoin treasury.

The company’s share price has risen 505% since the start of the year, ballooning its market capitalisation from roughly $15 billion on Jan. 2 to its current value.

MicroStrategy’s stock price performance this year is mainly attributed to its Bitcoin buying efforts, which spanned from August 2020 to December 2024 and have transformed the company into a quasi-Bitcoin ETF.

In total, the company has spent $23.41 billion on Bitcoin at an average price of $58,200 mainly by issuing debt notes. Its Bitcoin stash is valued at $42 billion at market prices at the time of publishing.

MSTR’s inclusion in the NAS100 will expose it to more investors and funds that invest in the Nasdaq index. The largest fund that does this is Invesco’s QQQ trust with an AUM of $352 billion, but other funds holding billions of dollars also invest in the companies in the NAS100, like the iShares NASDAQ 100 UCITS ETF.

However, it is worth noting that not all companies in the Nasdaq 100 carry equal weighting. For example, Invesco’s QQQ ETF allocates roughly 53.1% of its portfolio to the top 10 companies on the Nasdaq exchange, while the remainder is distributed among the other 90 companies.

Nonetheless, 0.1% of a $352 billion pie is still significant.

MicroStrategy stock price soared on Friday after the Nasdaq announced that it will be adding the company to the Nasdaq 100 index. The decision comes after a stellar year for MicroStrategy, with its stock price rising by over 500% year-to-date.

The Nasdaq 100 index tracks the 100 largest companies on the Nasdaq exchange. The companies included are usually recipients of passive fund flows from popular ETFs.

With a market capitalisation of $97.94 billion, MicroStrategy is the 40th largest company on the Nasdaq exchange, largely due to its massive Bitcoin treasury.

The company’s share price has risen 505% since the start of the year, ballooning its market capitalisation from roughly $15 billion on Jan. 2 to its current value.

MicroStrategy's stock price performance this year is mainly attributed to its Bitcoin buying efforts, which spanned from August 2020 to December 2024 and have transformed the company into a quasi-Bitcoin ETF.

In total, the company has spent $23.41 billion on Bitcoin at an average price of $58,200 mainly by issuing debt notes. Its Bitcoin stash is valued at $42 billion at market prices at the time of publishing.

MSTR's inclusion in the NAS100 will expose it to more investors and funds that invest in the Nasdaq index. The largest fund that does this is Invesco’s QQQ trust with an AUM of $352 billion, but other funds holding billions of dollars also invest in the companies in the NAS100, like the iShares NASDAQ 100 UCITS ETF.

However, it is worth noting that not all companies in the Nasdaq 100 carry equal weighting. For example, Invesco’s QQQ ETF allocates roughly 53.1% of its portfolio to the top 10 companies on the Nasdaq exchange, while the remainder is distributed among the other 90 companies.

Nonetheless, 0.1% of a $352 billion pie is still significant.