MicroStrategy Shares Could Surge If Added to Nasdaq 100 on Friday, Crypto Analyst Says

MicroStrategy's (MSTR) potential inclusion in the Nasdaq 100 index on December 23 is expected to drive significant ETF share purchases, potentially bolstering its Bitcoin acquisition strategy and boosting its stock price. According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, MicroStrategy is likely to be added to the Nasdaq 100 (QQQ) on December 23, with an official announcement coming on December 13. This development could lead to net buying of at least $2.1 billion in shares by ETFs, equal to about 20% of daily volume.

MicroStrategy's inclusion in the Nasdaq 100, with a 0.47% weight, is expected to drive substantial ETF share purchases, potentially bolstering its Bitcoin holdings. According to Bloomberg ETF analyst James Seyffart, ETFs tracking the Nasdaq 100 are expected to purchase $2.1 billion worth of MicroStrategy shares, representing about 20% of the company’s daily trading volume. This influx of capital could lead to a surge in MicroStrategy's stock price and increased trading volume.

The $2.1 billion in ETF share purchases could significantly boost MicroStrategy's liquidity and potentially reduce stock price volatility. This influx of capital could make it easier for investors to buy and sell shares, leading to a more stable and predictable stock price. However, the exact impact on volatility will depend on various factors, including the company's future performance and market conditions.

MicroStrategy's potential inclusion in the S&P 500 in 2025 could further boost its Bitcoin acquisition strategy. An upcoming change in accounting rules related to Bitcoin valuations could potentially make the company eligible for the S&P 500 in 2025. Currently valued at $41 billion, recognizing these gains could make MicroStrategy eligible for the S&P 500, attracting substantial inflows and further enhancing its financial flexibility for Bitcoin purchases. This potential inclusion, coupled with its aggressive Bitcoin acquisition strategy, could drive MicroStrategy's stock price even higher, as seen in its 450% year-to-date increase.

In conclusion, MicroStrategy's potential inclusion in the Nasdaq 100 and S&P 500 could significantly boost its Bitcoin acquisition strategy and drive its stock price higher. The influx of capital from ETF share purchases could enhance the company's liquidity and potentially reduce stock price volatility. As MicroStrategy continues its aggressive Bitcoin acquisition strategy, investors should closely monitor its progress and the potential impact of index inclusions on its stock price.