Probably the most recognizable indices monitoring public corporations within the US, the Nasdaq-100, will carry out its eligibility snapshot at present. Nasdaq’s committee will use buying and selling information via 4pm at present in New York to judge corporations trying to enter the index throughout its annual rebalancing occasion, together with Michael Saylor’s bitcoin acquisition firm, MicroStrategy (MSTR).
Right this moment is a big occasion for MicroStrategy’s ravenous group of leveraged bitcoin traders who’ve inspired the corporate to gobble up practically 3% of bitcoin’s provide. At press time, they appear to be doing every little thing they’ll to assist; MSTR is buying and selling over 6% greater at present with a market capitalization exceeding $92 billion.
Second solely to Customary & 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 last, 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 evaluation
Nasdaq requires constituents of its index to fulfill Safety Eligibility Standards, and MicroStrategy satisfies virtually all of them.
MicroStrategy inventory has its major US itemizing completely on the Nasdaq World Choose Market or the Nasdaq World 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 no less than $5 million.
The corporate has a free float of no less than 10%.
Its market capitalization ranks properly amongst current Nasdaq-100-listed corporations.
Relating to uncertainty of Nasdaq-100’s non-financial requirement, the strict definition gives 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 labeled 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 at present have this designation, final discretion about Nasdaq-100 inclusion is left to a handbook committee evaluation.
The annual reconstitution of Nasdaq-100 is a serious occasion that can have vital implications for traders. This 12 months might be the primary time a serious inventory index and its related passive flows profit an organization holding practically 2% of all circulating bitcoin. If Nasdaq’s committee votes for MicroStrategy’s addition to its Nasdaq 100 index, it should announce its determination on December 13, 2024 after 4pm New York time.