MicroStrategy Stock Climbs Pre-Market On Nasdaq-100 Addition As Bitcoin Hits Record High: Retail Eyes More Upside

Shares of MicroStrategy rose as much as 5% in pre-market trade on Monday after Nasdaq announced the company will be included in the Nasdaq-100 index over the weekend.

The index inclusion, which takes effect Dec. 23, follows MicroStrategy’s massive surge this year. So far, the stock is up 547%, far outpacing the S&P 500′s 26.9% advance.

Its surge is largely attributed to Bitcoin’s jump to all-time highs this year, taking the shares of the largest corporate holder of Bitcoin with it. Over the weekend, the world’s largest cryptocurrency hit a fresh record of $106,488.

Pre-market on Monday, Bitcoin was trading at nearly $104,000, up 1.24% in the last 24 hours. 

MicroStrategy has 439,000 BTC on its balance sheets, valued at around $45 billion, after adding 15,350 BTC to its coffers on Sunday. This accounts for nearly half of its market capitalization, which is at $97.9 billion. 

MicroStrategy Sentiment and Message Volume on Dec 16 as of 8:25 a.m. ET | Source: Stocktwits

Retail sentiment around the stock remained in the ‘bullish’ zone at chatter increased to ‘normal’ from ‘low’ levels.

Retail investors on the platform are optimistic that the stock could reach new highs as Bitcoin's price continues its ascent, buoyed by expectations of more crypto-friendly policies under President-elect Donald Trump’s administration.

MicroStrategy's addition to the Nasdaq-100 places it among 100 of the largest non-financial companies listed on Nasdaq. The Nasdaq-100 has long been dominated by the best tech stocks, with technology currently accounting for roughly 60% of the fund's assets.

This inclusion will likely trigger automatic buying from exchange-traded funds (ETFs), including the Invesco QQQ Trust, which manages over $325 billion in assets. 

The Nasdaq rebalances the index annually, selecting stocks based on market capitalization rankings as of the final trading day in November, along with liquidity and free float share requirements.

MicroStrategy was the first software company to pivot to a Bitcoin-inclusive treasury reserve strategy. It has been building its Bitcoin reserves for years, making it a proxy for the digital currency. 

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