MicroStrategy, a prominent player in the Nasdaq-100, has recently made headlines by acquiring a substantial 15,350 BTC, equivalent to approximately $1.5 billion. This acquisition was made at an average price of $100,386 per BTC, marking a significant investment in the cryptocurrency landscape.
With this new addition, MicroStrategy now holds an impressive 439,000 BTC, purchased at a total cost of $27.1 billion. This averages out to $61,725 per Bitcoin, reflecting their strategic purchasing decisions over time. The company’s year-to-date (YTD) yields stand at 46.4% for the quarter-to-date (QTD) and 72.4% YTD, showcasing their financial acumen and success in cryptocurrency investments.
MicroStrategy’s Influence in the Bitcoin Market
MicroStrategy’s holdings now account for 2% of the total 21 million BTC in existence. This substantial share emphasizes their significant influence within the Bitcoin market. On December 15, Michael Saylor, the company’s CEO, engaged the cryptocurrency community with a thought-provoking post on social media, questioning the absence of a “green dot” on SaylorTracker, which is commonly interpreted as a signal for upcoming Bitcoin purchases.
MicroStrategy Joins the Nasdaq-100 Index and ‘QQQ’ ETF
Starting December 23, MicroStrategy’s inclusion in the Nasdaq-100 positions the company within highly-regarded index-tracking funds like QQQ. This prestigious exchange-traded fund, managing over $250 billion in assets, provides unparalleled exposure to millions of retail and institutional investors worldwide.
As a result, ETFs tracking the index, collectively managing over $550 billion in assets, have now automatically included MicroStrategy in their portfolios. Invesco QQQ, the largest among them, manages assets exceeding $300 billion, creating substantial potential to boost MicroStrategy’s share value significantly.
MicroStrategy’s entry into the Nasdaq-100 marks a historical milestone as the first Bitcoin treasury company to achieve this status. Michael Saylor, however, predicts that $MARA might be the next to follow suit.
Prospects for MicroStrategy’s Inclusion in the S&P 500
James Van Straten, a senior analyst at CoinDesk, emphasizes that MicroStrategy needs positive earnings over the past four quarters to qualify for the S&P 500. He projects that with the implementation of FASB in Q1 2025 and Bitcoin priced at $120,000, MicroStrategy could achieve $25 billion in net income, potentially making it eligible for inclusion in the S&P 500 by Q2 2025.
Impact on Bitcoin Price
The price of Bitcoin has continued its upward trajectory, reaching a new all-time high of $106,488.25 early Monday. This surge in value comes amidst growing investor optimism, fueled by US President-elect Donald Trump’s potential strategic reserve fund for Bitcoin and the continuous influx of institutional interest, including MicroStrategy’s Nasdaq listing.
At the time of writing, Bitcoin is trading at $103,000, with a minor fluctuation. Market experts suggest that MicroStrategy’s increasing influence in the Nasdaq-100 and its ongoing Bitcoin acquisitions could attract more institutional buyers, potentially driving Bitcoin to new record highs.
