MicroStrategy’s meteoric rise off the back of its Bitcoin investment strategy means it may enter the Nasdaq 100 index when the list is updated in a few days.
Some say the company shouldn’t be eligible though as it’s now a finance company, not a software company and finance stocks aren’t included in the index.
According to Bloomberg ETF analysts though, it’s likely MicroStrategy will be included in the index as it’s currently classified as a tech stock and that can’t change until March next year.
Is Michael Saylor’s MicroStrategy still really a software company, or has it become a poorly disguised finance company? That’s the subject of some debate in crypto circles this week.
‘Why is this question important?’ you may be asking yourself. Well, if MicroStrategy is deemed to have become a finance company it’ll be ineligible for inclusion in the Nasdaq 100 index, which is due to be updated at the end of this week.
Being left out of the index could be a big deal for the company, as inclusion in indices usually means a significant uptick in in-flows through index funds and ETFs, which translates to an increased share price.
Some say it’s a no-brainer, MicroStrategy should be included in the updated Nasdaq 100. These people say it meets all the criteria, including not being a finance company, and it’s one of the top 100 Nasdaq-listed companies by market cap, so it should be in the index. This is the position of TD Cowen analyst, Lance Vitanza
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