Last updated:
Ad Disclosure
We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships.
MicroStrategy’s eligibility for inclusion in the Nasdaq 100 may depend on its sector classification under the Industry Classification Benchmark (ICB).
In a recent social media post, Bloomberg Intelligence analyst James Seyffart noted that MicroStrategy could be reclassified as a financial stock due to its substantial Bitcoin holdings and financial engineering activities. Such a change would disqualify the company from selection to the Nasdaq 100.
Tech Stock or Financial Stock?
According to Seyffart, while MicroStrategy is classified as a technology stock due to its software-as-a-service business, its significant Bitcoin holdings and aspirations to become a “Bitcoin bank” could prompt a reclassification as a financial stock.
“If the ICB reclassifies MicroStrategy as a financial stock, it would be ineligible for the Nasdaq 100.The next change could come on March 21, though the process would have start by Jan.31,” Seyffart shared in his analysis.
“The rules indicate $MSTR should be added in our view but its not official until Nasdaq announces it on Friday,” Seyffart clarified.
Eric Balchunas previously suggested that MicroStrategy is likely to be added to the Nasdaq 100 index ($QQQ) on Dec. 23, with an official announcement expected on Dec. 13. He noted that Moderna is the most likely candidate to be removed from the index.
Balchunas estimated that MicroStrategy could hold a 0.47% weight in the index, ranking as the 40th largest holding. The company might also be added to the S&P 500 index in the coming year.
MicroStrategy Buys 21,550 Bitcoin for $2.1 Billion
From Dec. 2 to Dec. 8, MicroStrategy acquired 21,550 Bitcoin for approximately $2.1 billion, as disclosed in an official filing. The purchase was made at an average price of $98,783 per Bitcoin.
This transaction brought its total Bitcoin holdings to 423,650 BTC, valued at approximately $42 billion. The acquisition followed the company’s purchase of 15,400 BTC last week for $1.5 billion, acquired at an average price of $95,976 per coin.