One of the vital recognizable indices monitoring public corporations within the US, the Nasdaq-100, will carry out its eligibility snapshot in the present day. Nasdaq’s committee will use buying and selling information by way of 4pm in the present day in New York to judge corporations seeking to enter the index throughout its annual rebalancing occasion, together with Michael Saylor’s bitcoin acquisition firm, MicroStrategy (MSTR).
Immediately is a big occasion for MicroStrategy’s ravenous group of leveraged bitcoin traders who’ve inspired the corporate to gobble up almost 3% of bitcoin’s provide. At press time, they appear to be doing the whole lot they will to assist; MSTR is buying and selling over 6% greater in the present day with a market capitalization exceeding $92 billion.
Second solely to Normal & Poor’s’ famend S&P 500 index and besting the recognition of Dow Jones’ antiquating Industrial Common index, the Nasdaq-100 tracks the worth of the 100 largest Nasdaq-listed, non-financial corporations.
Though that ultimate, non-financial requirement has launched a little bit of doubt into the minds of MicroStrategy traders, the corporate is in any other case well-positioned to qualify for inclusion.
MicroStrategy has Nasdaq-100 eligibility however should move committee assessment
Nasdaq requires constituents of its index to satisfy Safety Eligibility Standards, and MicroStrategy satisfies virtually all of them.
MicroStrategy inventory has its major US itemizing solely on the Nasdaq International Choose Market or the Nasdaq International Market.
It has not filed for chapter, nor wouldn’t it be in any other case ineligible.
MicroStrategy has registered 3-month steady buying and selling on Nasdaq with common each day traded worth of not less than $5 million.
The corporate has a free float of not less than 10%.
Its market capitalization ranks nicely amongst present Nasdaq-100-listed corporations.
Relating to uncertainty of Nasdaq-100’s non-financial requirement, the strict definition provides some solace. Though MicroStrategy’s software program enterprise has dwindling significance relative to its seemingly monetary services-like enterprise of bitcoin asset administration, it’s in all probability not technically categorized as a Monetary firm.
To be strictly eligible as a Nasdaq-100 constituent, the Business Classification Benchmark (ICB) operated by FTSE Worldwide Restricted should not classify the corporate’s inventory as belonging to the Monetary Business. Though MicroStrategy doesn’t presently have this designation, final discretion about Nasdaq-100 inclusion is left to a guide committee assessment.
The annual reconstitution of Nasdaq-100 is a serious occasion that can have important implications for traders. This yr may very well be the primary time a serious inventory index and its related passive flows profit an organization holding almost 2% of all circulating bitcoin. If Nasdaq’s committee votes for MicroStrategy’s addition to its Nasdaq 100 index, it can announce its resolution on December 13, 2024 after 4pm New York time.
