- MicroStrategy stock climbed Monday higher as investors cheered the firm's addition to the Nasdaq 100.
- The addition means more ETFs will start buying the stock, including the popular QQQ fund.
- The firm's stock is up 575% this year, far outpacing bitcoin's 145% gain.
Microstrategy got a boost on Monday following the news that the bitcoin whale is joining the Nasdaq 100, putting it on the radar of more tech investors.
Shares rallied as much as 4% Monday morning, trading around $426 each. The stock is up 575% year-to-date, surging as the company pursues an aggressive strategy of piling up as much bitcoin as it can. Its stock gains have handily surpassed those of bitcoin itself, which is up about 145% in 2024, trading at fresh all-time highs above $106,000 over the weekend.
Microstrategy will be added to the index on December 23. Its addition to the Nasdaq 100 marks a major development for the company, as it exposes the stock to more traders and exchange-traded funds that track the popular tech-heavy index. That includes the QQQ, the 15th most-traded ETF on the market, according to the ETF tracker VettaFi.
Microstrategy also beefed up its bitcoin holdings, it said in a securities filing on Monday, fueling more bullish sentiment. The firm purchased 15,350 bitcoin, raising its total bitcoin holdings of the token to 439,000 worth about $45.5 billion. According to a post from Michael Saylor announcing the latest purchases, the company's average cost per bitcoin is $61,725.
It is the top corporate holder of the token, according to the analytics site Bitcoin Treasuries.
"The recent inclusion of MicroStrategy, the largest corporate holder of Bitcoin, in the Nasdaq-100 index underscores the increasing influence of this cryptocurrency in the tech sector," Antonio Di Giacomo, a senior market analyst at XS.com, said in a statement on Monday. "This legitimizes Bitcoin as a solid investment option and highlights its ability to compete with traditional assets in terms of value and relevance."
Crypto markets broadly have rallied since the election, on the promise of a friendlier presidential administration come January. The latest rally to record highs over the weekend came amid fresh speculation that President-elect Donald Trump could establish a bitcoin reserve via executive order. Several states including Texas and Pennsylvania are also exploring the idea.