MicroStrategy is expected to join Nasdaq 100 before year-end

MicroStrategy, as the main company acquiring Bitcoin, is expected to join the Nasdaq 100 index, but analysts have warned the company.

Eric Balchunas, Bloomberg ETF analyst, in his Message on December 11, declared that MicroStrategy (MSTR) would like to be added to the Nasdaq 100 Index on December 23, the announcement should take place on Thursday.

This development came after the company issued more financial bonds and senior notes to institutional investors in the United States in order to acquire more Bitcoin (BTC) in the future.

He also expects the company to enter the S&P 500 index by next year, something some analysts see as difficult to achieve in the near future.

“$MSTR will likely be added to $QQQ on 12/23 (with announcement coming on 12/13). Moderna will probably be started (symbolic). Below is the best estimate of additions/deletions. Probably a weighting of 0.47% (40th largest participation). There are $550 billion worth of ETFs tracking the index. S&P 500 Adds Problem Next Year,”

Balchunas says

James Seyffart, another Bloomberg ETF analyst, also declared that MicroStrategy’s chances of entering the S&P 500 increase after the Nasdaq 100. He predicts the move could result in net purchases of at least $2.1 billion, equivalent to a quarter of daily volume transactions, of shares by ETFs.

Seyffart gives advice to MicroStrategy

Although both analysts have a bullish view on the company, it comes with a caveat. Including a company’s shares in the index can be difficult due to the lack of profits generated.

However, last year the Financial Accounting Standard Board (FASB) released its first accounting rule, which included crypto reporting for businesses and the use of fair value valuation methods.

This means that crypto could be considered an asset class for the company, including Bitcoin.