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cryptonews 2024-12-11 17:06:40

MicroStrategy’s Nasdaq 100 Status Tied to ICB Classification: Bloomberg Intelligence

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. My thoughts on MicroStrategy getting reclassified as a financials stock on the back of our prediction that Nasdaq will likely announce it's entry into the Nasdaq 100 (The rules indicate $MSTR *should* be added in our view but its not official until Nasdaq announces it on Friday) pic.twitter.com/NCj96owSw5 — James Seyffart (@JSeyff) December 11, 2024 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. $MSTR is likely to be added to $QQQ on 12/23 (w/ announcement coming 12/13). Moderna likely to get boot (symbolic). Below is best guess of adds/drops via @JSeyff . Likely a 0.47% weight (40th biggest holding). There's $550b of ETFs tracking the index. S&P 500 add next yr prob. pic.twitter.com/rmTavtvWQL — Eric Balchunas (@EricBalchunas) December 10, 2024 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. The post MicroStrategy’s Nasdaq 100 Status Tied to ICB Classification: Bloomberg Intelligence appeared first on Cryptonews .

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