MicroStrategy is Added to Nasdaq-100 Index

Nasdaq announced on Friday that MicroStrategy, a company that has experienced a rapid increase in its shares due to its investment in Bitcoin, will now be included in the tech-heavy Nasdaq-100 Index. This change will take effect before the market opens on Dec. 23.

Being added to the index typically leads to an increase in a stock’s price, as exchange-traded funds that want to track the index’s performance will purchase shares of the newly added company. MicroStrategy will be joining other newly added companies, Palantir Technologies and Taser maker Axon Enterprise.

In contrast, gene-sequencing equipment maker Illumina, AI server maker Super Micro Computer, and vaccine maker Moderna will be removed from the index, according to Nasdaq. With a market value of almost $94 billion, MicroStrategy has experienced a significant price surge of over six-fold this year.

The data analytics company began investing in Bitcoin in 2020 amidst a decrease in revenue from its software business. Currently, it is the largest corporate holder of the cryptocurrency.