MicroStrategy has continued to strengthen its Bitcoin strategy as it now holds 439k BTCs, which represents 2 percent of the total supply.
The rise of Bitcoin (BTC) price above $100K in the past three weeks has significantly bolstered the stock market of all companies that hold the flagship coin on their balance sheet, led by MicroStrategy Inc (NASDAQ: MSTR). With the United States having identified Bitcoin as a digital gold, more institutional investors are expected to adopt it as a hedge against inflation and ongoing global fiat devaluation.
MicroStrategy on a Path of Taking Over Wall Street
After accumulating around 439k Bitcoins in the past few years, MicroStrategy has become the largest corporate holder of BTCs, which accounts for over 2 percent of the total circulating supply. Consequently, MicroStrategy’s stock market has rallied in tandem with Bitcoin in the past two years.
According to the latest market data, MSTR stock has rallied more than 546 percent year-to-date to trade at about $411 at the time of this writing. The company‘s stock market is expected to rally further as Bitcoin enters its parabolic phase of the macro bull run.
The company’s success story is further bolstered by the recent announcement of inclusion in the Nasdaq-100, which will take effect on December 23, 2024. As a result, Wall Street experts led by Gautam Chhugani, an analyst at Bernstein, believe that the inclusion of MicroStrategy on the Nasdaq-100 list will dramatically improve its liquidity, which will further help expand its Bitcoin agenda.
Moreover, the inclusion of MicroStrategy on the Nasdaq-100 will lead to an automatic listing on the Invesco QQQ Trust ETF.
According to Benchmark Broker in a report to clients on Monday, MicroStrategy is likely to be included in the US’s S&P 500 index soon. However, analysts at Benchmark led by Mark Palmer noted that the company needs to report positive earnings for the most recent quarters to qualify for a listing on the S&P 500.
Additionally, Palmer highlighted the company’s total earnings for the sum of its trailing four consecutive quarters.
The inclusion of MicroStrategy in the Nasdaq-100 and potentially the S&P 500 will have a significant impact in the long haul, potentially similar to Tesla Inc (NASDAQ: TSLA).
Bigger Picture
According to MicroStrategy’s founder Michael Saylor, Bitcoin is an economic backbone for the free world, thus the support for a strategic BTC reserve should be automatic. Moreover, Bitcoin BTC $106 981 24h volatility: 0.1% Market cap: $2.13 T Vol. 24h: $33.64 B has a finite supply of 21 million and is globally accepted as a commodity with an intrinsic value akin to gold.
Consequently, the Bitcoin market is well positioned to overtake that of Gold in the coming years fueled by nation-states seeking. Moreover, the US spot BTC ETF issuers led by BlackRock’s IBIT are aggressively accumulating more Bitcoins, indicating institutional investors are ready to risk in Bitcoin than holding fiat currencies.
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