Bitcoin buyer MicroStrategy's Nasdaq 100 entry to support stock rally
index, further brightening the prospects of the stock.
The $25.7 trillion index that houses the largest non-financial companies will now gain indirect exposure to bitcoin via MicroStrategy, which holds $44 billion worth of the digital currency on its balance sheet, about 2% of the total supply of the world's largest cryptocurrency.
The prospect of more buying from funds that track the Nasdaq 100 could further boost MicroStrategy's stock that has surged nearly 550% this year alongside a jump in bitcoin price.
It could be «the start of a looping cycle of capital that could potentially drive up the spot BTC price,» said Matthew Dibb, chief investment officer at cryptocurrency asset manager Astronaut Capital.
«ETFs such as QQQ and many others would buy MicroStrategy to mirror holdings of the index, therefore driving up the price, and in turn, allowing MicroStrategy to purchase more BTC through debt, bond and equity offerings.»
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