Nasdaq 100 Welcomes MicroStrategy, Paving the Way for Billions in Passive Capital to Flow into Bitcoin-Tied Stock

MicroStrategy (MSTR), renowned as a “Bitcoin Development Company,” is poised to make history as the first bitcoin-focused firm to enter the prestigious Nasdaq-100 Index. This milestone comes after a year of remarkable growth that positioned the company among the 100 largest non-financial firms listed on the Nasdaq, joining ranks with titans like Apple, Microsoft, Amazon, Tesla, and Nvidia.

The announcement late Friday evening sent bitcoin (BTC) higher, briefly surpassing $102,000.

As of the Nasdaq’s Nov. 29 snapshot for its annual rebalancing, MicroStrategy boasted a market capitalization of $92 billion, placing it roughly 40th in the index with an estimated 0.47% weight, according to Bloomberg ETF analyst Eric Balchunas. For comparison, Apple’s pre-rebalancing weighting sat near 9%, while firms like Qualcomm — ranked 20th — held around 1%.

MicroStrategy’s inclusion dramatically increases the Nasdaq-100’s indirect exposure to bitcoin, given the firm’s significant BTC holdings of roughly $42 billion. This also opens MSTR up to billions in passive inflows, as ETFs tracking the Nasdaq-100 manage over $550 billion in assets, with the Invesco QQQ Trust (QQQ) accounting for more than $300 billion alone.

“This inclusion is game-changing,” said James Van Straten, senior analyst at CoinDesk. “MicroStrategy will now benefit from consistent inflows as index-tracking funds buy shares regardless of price, providing a steady demand base. At the same time, Michael Saylor’s ongoing at-the-market (ATM) stock offerings will likely see stronger support.”

Despite the celebration, Bloomberg’s James Seyffart noted that MicroStrategy’s status could be revisited as early as March. Its bitcoin-centric strategy may see it reclassified as a financial firm rather than a technology company, which could lead to its removal from the Nasdaq-100. Saylor himself has described MicroStrategy’s transformation into a “bitcoin bank,” further blurring the lines between tech and finance.

Van Straten added, “With MSTR now in the Nasdaq-100, attention may shift to the S&P 500 and its SPDR S&P 500 Trust (SPY), the largest ETF with $650 billion in AUM. SPY may consider adding MicroStrategy to maintain competitiveness, expanding bitcoin exposure to even more institutional and retail investors.”

The Nasdaq-100 rebalance — along with adjustments to QQQ and related ETFs — will take effect on Dec. 23, cementing MicroStrategy’s place in a broader pool of passive investment capital.