Today, Bloomberg ETF analysts Eric Balchunas and James Seyffart announced that MicroStrategy (MSTR) is expected to enter into the Nasdaq 100 (QQQ) later this month on December 23.
$MSTR is likely to be added to $QQQ on 12/23 (w/ announcement coming 12/13). Moderna likely to get boot (symbolic). Below is best guess of adds/drops via @JSeyff. Likely a 0.47% weight (40th biggest holding). There’s $550b of ETFs tracking the index. S&P 500 add next yr prob. pic.twitter.com/rmTavtvWQL
— Eric Balchunas (@EricBalchunas) December 10, 2024
“MicroStrategy will likely enter the Nasdaq 100 Index on Dec. 23, and we expect net buying of at least $2.1 billion in shares by ETFs to follow, equal to about 20% of daily volume,” Seyffart explained. “Joining the S&P 500 will be tougher because of a lack of profit, though an accounting-rule change surrounding Bitcoin valuations could make MicroStrategy eligible in 2025.”
Net buying of $2.1 billion would be an added boost to MSTR, which has already outperformed most major stocks and also bitcoin this year — up 450% year-to-date at the time of writing. MSTR, powered by its relentless bitcoin acquisition strategy, has seen its stock skyrocket to a new all time high this year for the first time since March 10, 2000.
MSTR has already acquired over 170,000 bitcoin since announcing its plans to raise $42 billion to purchase more BTC in late October.
Balchunas stated that the official announcement of MSTR getting added to QQQ is expected to come this Friday, December 13.
“Again this is our best estimate of what will go down,” Balchunas concluded. “We don’t work at Nasdaq. FYI!”
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