The last couple of days have been filled with holiday celebrations. MicroStrategy’s inclusion in the Nasdaq 100 was another highlight of this week.
Some thought that this news would boost the stock price of the company in the short term, but so far it hasn’t happened. MSTR shares were down by 22% as of 1pm ET on Friday, December 16th (after news about the inclusion in the index was released late that previous Friday).
MicroStrategy’s price decline is most likely the result of profit-taking by end-of-year (MSTR has increased 380% since 2024). Recent drops in BTC are also contributing factors.
The bigger picture, though? Significance of MSTR’s inclusion in the index, analysts note, stems from the massive funds that allocate to the Nasdaq 100 constituents — namely Invesco’s QQQ, an ETF that manages $325 billion in assets.
“More to the point, it’s acceptance,” Last week, Dan Weiskopf told me that he was the co-portfolio manger of Amplify’s BLOK ETF. “It’s institutional adoption. It’s an example of [Michael Saylor’s] strategy working, candidly.”
The question for 2025 is whether MSTR could also land itself in the S&P 500. Bigger than QQQ, the SPDR S&P 500 ETF (SPY) — with $636 billion in assets — invests in the companies within that index.
Weiskopf said this was possible within the year “a reach,” But believes that it is inevitable.
Mark Palmer, Benchmark’s Mark Palmer stated that MicroStrategy meets minimum requirements for market capital and trading volume but it must have positive earnings in the last quarter as well as positive earnings combined for all four previous quarters.
MSTR’s plan to implement new FASB guidelines on the accounting for BTC in balance sheets would allow it to start reporting positive earnings by Q1, Palmer said.
It is evident that more companies are using BTC to store their assets. Ask asset manager Bitwise which, yesterday, proposed an ETF for Bitcoin Standard Corporations.
This planned investment would be in companies that have a market cap above $100 million and hold 1,000 BTC or more in the corporate treasury.
MSTR clearly fits this criteria (444 262 BTC). As do many of the larger bitcoin miners like Marathon Digital (44 394 BTC, as of December 18), Hut 8 (10,0096 BTC), Riot Platforms (16,429BTC) and CleanSpark (9 297BTC).
Metaplanet also revealed that it had purchased 620 BTCs on Monday. This brings its total to 1,762 BTCs.
Others — like KULR Technology Group, with an initial buy of 217 BTC yesterday — are working their way up.
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