Key Takeaways
- MicroStrategy likely to join Nasdaq 100 on Dec. 23.
- Bitcoin acquisitions drive 147% premium to net asset value.
- Bernstein rates MicroStrategy 'outperform' with $600 target.
MicroStrategy’s growth trajectory is poised for a boost as analysts at Bernstein anticipate its inclusion in the Nasdaq 100 index on Dec. 23.
Nasdaq 100 Inclusion
This development, coupled with a renewed focus on Bitcoin from the incoming Trump administration, could enhance the company’s visibility and market recognition, according to Bernstein analysts.
Bloomberg analysts
Bloomberg analyst James Seyffart projected at least $2.1 billion in net share purchases by ETFs following the inclusion, representing approximately 20% of MicroStrategy’s daily trading volume.
Fellow analyst Eric Balchunas suggested that Moderna might be removed from the index to make room for MicroStrategy, with an estimated 0.47% weight in the Nasdaq 100.
Bitcoin acquisitions
MicroStrategy has invested heavily in Bitcoin, adding $16 billion worth of BTC over the past 40 days alone.
The firm trades at a 147% premium to its Bitcoin net asset value, leading some investors to question the sustainability of its valuation.
However, Bernstein analysts argue that the premium may normalize as the firm continues to accumulate Bitcoin, leveraging its $42 billion debt and equity raise plan.
S&P 500 inclusion
Bernstein also highlighted the potential for S&P 500 inclusion in 2025, driven by upcoming accounting rule changes that could allow MicroStrategy to recognize unrealized Bitcoin gains.
Analysts rated MicroStrategy as “outperform” with a $600 price target, reflecting its current strategy and Bitcoin’s price stability around $100,000.
MicroStrategy shares rose 3.3% on Tuesday, closing at $377.32, with year-to-date gains exceeding 444%.
