MicroStrategy (MSTR), the company that's been buying up every available Bitcoin, is set to join the Nasdaq 100 index on December 23, 2024. The Nasdaq 100, a tech-heavy index featuring giants like Apple, Microsoft, and Tesla, now includes a company whose business strategy revolves almost entirely around Bitcoin. 

MicroStrategy’s inclusion in the Nasdaq 100 is no ordinary milestone. The company holds an eye-popping 439,000 bitcoins, worth approximately $44 billion at current prices. This makes it not just a software firm but what its co-founder and chairman Michael Saylor calls a "Bitcoin finance company." 

MicroStrategy has been on a wild ride since 2020 when Saylor, the company's chairman and co-founder, decided to go all-in on Bitcoin. What started as a move "out of desperation" has turned into a stunning success story. The company now holds a whopping 423,650 bitcoins, making it the world's largest corporate Bitcoin hoarder.

“If I want high vol, high-performance Bitcoin equity, you have to have a company that’s 150% Bitcoin,” Saylor said recently.

The Nasdaq 100 index is typically reserved for the largest non-financial companies by market capitalization. MicroStrategy’s inclusion reflects its meteoric rise this year—its stock has surged over 500%, driven by Bitcoin’s rally past $100,000 and investor optimism about crypto-friendly policies under the incoming U.S. administration. 

MicroStrategy's market value has ballooned to almost $98 billion, with about $43 billion of that in Bitcoin. But make no mistake: MicroStrategy stands out in this group like a zebra at a horse race.

How did a business intelligence software company end up in this position? Well, it's all thanks to Saylor's financial wizardry. MicroStrategy has been issuing long-dated convertible bonds and using the funds to buy more Bitcoin.

Now, the million-dollar question (or should we say, the 100,000-dollar question):

Will MicroStrategy's inclusion in the Nasdaq 100 pump Bitcoin's price even higher?

Bitcoin has already had a stellar year, up about 140% in 20242. It recently broke through the $100,000 barrier, a milestone that would have seemed like science fiction just a few years ago.

With MicroStrategy joining the Nasdaq 100, we're looking at even more indirect Bitcoin exposure for mainstream investors. As Jeff Park, Head of Alpha Strategies at Bitwise Invest, cheekily tweeted, "All of you own Bitcoin now, whether you know it or not, planned to or not, like it or not."

Michael Saylor, the mastermind behind Microstragey’s success, isn't showing any signs of slowing down.

The company's strategy is simple yet effective: raise money through stock and bond offerings, then use that money to buy more Bitcoin. Rinse and repeat. It's like a never-ending cycle of Bitcoin accumulation, and so far, it's been paying off handsomely for shareholders.

While this has been wildly profitable during Bitcoin’s bull runs, critics warn that it ties MicroStrategy's fate too closely to a volatile asset.

Short sellers like Citron Research have voiced concerns about MicroStrategy being "overheated," noting that its trading volumes are detached from traditional fundamentals. 

Even some analysts who are bullish on Bitcoin question whether MSTR's performance is sustainable long-term.

Bitcoin-Friendly MicroStrategy Listed On Nasdaq 100 | HODL FM
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