MicroStrategy (MSTR) stock may be on the verge of another significant rally—this time driven not just by Bitcoin’s momentum, but by a potential inclusion in one of the most influential stock indices in the world: the Nasdaq 100.
According to Sean Farrell, Head of Digital Asset Strategy at FundStrat, the company’s classification as either a software developer or a financial entity will play a decisive role in whether it earns a spot in the index during the upcoming reconstitution on Friday. If added, MSTR could see a powerful influx of institutional capital from index-tracking exchange-traded funds (ETFs), amplifying its upward trajectory.
Why Nasdaq 100 Inclusion Matters
The Nasdaq 100 is a benchmark index that tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq exchange. First launched in 1985, it has become a barometer for innovation and growth, featuring tech giants like Apple, Microsoft, Amazon, and Tesla.
Inclusion in this elite group isn’t just symbolic—it brings real financial momentum. Over $550 billion in assets are currently invested in ETFs that track the Nasdaq 100. When a new stock is added, these funds are required to buy shares to maintain alignment with the index, often triggering a sustained price surge.
For MicroStrategy, which has transformed from a data analytics firm into the world’s largest public Bitcoin holder, this could be a pivotal moment.
From Software to Crypto Powerhouse
Founded in 1989, MicroStrategy began as a business intelligence and data analytics company. But its trajectory shifted dramatically in August 2020 when CEO Michael Saylor announced a corporate strategy to adopt Bitcoin as its primary treasury reserve asset.
Since then, MicroStrategy has amassed over 400,000 Bitcoins, making it a de facto proxy for Bitcoin exposure in traditional markets. This bold move has paid off: MSTR shares have surged approximately 500% in 2024 alone, closely mirroring Bitcoin’s own historic rally.
Despite its deep ties to cryptocurrency, MicroStrategy maintains its identity as a software company—a classification that could be its ticket into the Nasdaq 100. The index explicitly excludes financial firms, which are instead tracked under the Nasdaq Financial 100.
The Index Reconstitution Game
The upcoming reshuffle could see MicroStrategy replace Moderna (MRNA), which has seen its market capitalization decline amid reduced demand for its COVID-19 vaccine. Other contenders include Palantir Technologies (PLTR), another data-focused firm with strong growth metrics.
Meanwhile, Super Micro Computer (SMCI) may be at risk of removal due to volatility and shifting investor sentiment.
To qualify for the Nasdaq 100, a company must:
- Rank among the top 100 by market capitalization
- Maintain an average daily trading volume of over 200,000 shares
- Operate outside the financial sector
MicroStrategy appears to meet all three criteria—especially if regulators and index providers continue to view it as a technology firm rather than a crypto financial entity.
The ETF Effect: A Wave of Passive Buying
Even if inclusion is confirmed on Friday, ETFs won’t adjust their holdings until December 23. This creates a window of opportunity where demand for MSTR shares could remain elevated as fund managers prepare for rebalancing.
Farrell described this period as potentially “electric” for the stock, noting that passive inflows from ETFs often lead to sustained price momentum. He added:
"I'm definitely adding here and I think it's probably a very good risk-reward to add here. The risk is obvious—that it does not get into the index."
Still, with Bitcoin continuing to gain institutional acceptance and MSTR serving as one of the few publicly traded gateways to large-scale crypto exposure, investor appetite remains strong.
Shares jumped 9% on Wednesday, a move Farrell attributed to growing excitement around the Nasdaq 100 possibility. That momentum could accelerate if inclusion is confirmed.
Core Keywords Driving Market Interest
This moment hinges on several key themes shaping today’s investment landscape:
- MicroStrategy stock
- Nasdaq 100 inclusion
- Bitcoin investment
- ETF rebalancing
- Crypto stocks
- Passive investing
- Index reconstitution
- Market capitalization
These terms reflect both the technical mechanics of index investing and the broader narrative of digital assets gaining legitimacy in mainstream finance.
Frequently Asked Questions
Q: Why would Nasdaq 100 inclusion boost MicroStrategy’s stock?
A: Inclusion triggers mandatory buying from ETFs managing over $550 billion in assets. This passive demand often drives sustained price increases.
Q: Is MicroStrategy considered a financial company?
A: No—it’s classified as a software company. This distinction is crucial, as the Nasdaq 100 excludes financial firms.
Q: When will ETFs buy MSTR shares if it’s added?
A: Adjustments typically occur on December 23, creating a lag between announcement and actual fund purchases.
Q: How much Bitcoin does MicroStrategy own?
A: Over 400,000 BTC, acquired through strategic purchases since 2020.
Q: What happens if MSTR is not added to the index?
A: The stock may experience short-term disappointment, but its long-term value remains tied to Bitcoin’s performance and adoption.
Q: Could Palantir replace MicroStrategy as a contender?
A: Yes—Palantir (PLTR) is also being considered and meets many of the same criteria.
Looking Ahead: A Strategic Crossroads
MicroStrategy stands at a unique intersection of traditional finance and digital asset innovation. Its potential inclusion in the Nasdaq 100 isn’t just about prestige—it’s about access to massive pools of capital that could redefine its market dynamics.
Even beyond the index decision, the company plans to raise up to $43 billion over the next three years to further invest in Bitcoin, signaling unwavering confidence in cryptocurrency as a long-term store of value.
As regulatory clarity improves and crypto adoption grows, companies like MicroStrategy may increasingly serve as bridges between Wall Street and the blockchain economy.
For investors watching this space, the coming weeks could offer more than just a stock move—they might witness another milestone in the institutional integration of Bitcoin.