MicroStrategy Shares Surge Nearly 7% Amid Nasdaq 100 Inclusion And Bitcoin’s New Record High – MicroStrategy (NASDAQ:MSTR)

MicroStrategy Inc MSTR saw a 6.50% increase in pre-market trading on Monday, as per Benzinga Pro. This surge follows a significant rise in Bitcoin’s BTC/USD value, which briefly exceeded $106,000 before settling at $104,768.10.

What Happened: The spike in MicroStrategy’s stock price also coincides with its recent approval for inclusion in the Nasdaq 100 Index. Nasdaq announced the results of its annual reconstitution of the Nasdaq-100 Index on Saturday, confirming MicroStrategy’s addition. This development is expected to enhance the company’s visibility and attract more investors.

Bitcoin’s impressive performance over the weekend has been a key factor influencing MicroStrategy’s market activity. The company’s substantial investment in Bitcoin makes its stock price highly sensitive to fluctuations in the cryptocurrency’s value.

See Also: Crypto Analyst: Shiba Inu Price Set For Massive Surge, Could Go Up Sixfold

Why It Matters: The inclusion of MicroStrategy in the Nasdaq 100 Index is a significant milestone, as it is expected to boost the company’s profile and attract substantial inflows from major ETFs like Invesco QQQ Trust, Series 1 QQQ. According to Bernstein analysts, this move could lead to a 59% upside in the company’s valuation, with a target price of $600. Bloomberg Intelligence estimates that the Nasdaq 100 inclusion could bring in one-time and ongoing inflows of approximately $2.1 billion.

Additionally, MicroStrategy’s aggressive acquisition strategy has seen it purchase 21,550 Bitcoin for around $2.1 billion in early December, as reported in a filing with the SEC. This purchase was financed through the issuance and sale of over 5.4 million company shares, generating net proceeds of about $2.13 billion. The company’s total Bitcoin holdings now exceed 423,000 BTC, further solidifying its position as a major player in the cryptocurrency market.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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