Dec 13 (Reuters) - MicroStrategy (MSTR.O) , opens new tab will be added to the tech-heavy Nasdaq-100 Index, the exchange operator said on Friday, following a meteoric surge in the shares of the bitcoin buyer.

The change comes into effect before the market opens on Dec. 23, Nasdaq said.

Inclusion in the index typically boosts the stock's price, as exchange-traded funds looking to replicate the index's performance buy shares of the newly included firm.

Data analytics firm Palantir Technologies (PLTR.O) , opens new tab and Taser maker Axon Enterprise (AXON.O) , opens new tab were added to the Nasdaq-100 Index along with MicroStrategy. Gene-sequencing equipment maker Illumina (ILMN.O) , opens new tab, AI server maker Super Micro Computer (SMCI.O) , opens new tab and vaccine maker Moderna (MRNA.O) , opens new tab were removed, Nasdaq said.

MicroStrategy, an aggressive investor in the world's largest crypto asset, has seen its shares soar more than six-fold this year, taking its market value to almost $94 billion.

The company began buying and holding bitcoin in 2020 as revenue from its software business waned. It is now the largest corporate holder of the cryptocurrency.

Analysts have said MicroStrategy's decision to purchase bitcoin to protect the value of its reserve assets has enhanced the appeal of its stock, which tends to align with the performance of the cryptocurrency.

Bernstein analysts expect the market will likely set its sights on S&P 500 inclusion for MicroStrategy in 2025 following the Nasdaq-100 inclusion.

The brokerage also sees the company's prospects continuing to improve next year, adding it expects "more visibility and recognition beyond fresh ETF inflows," as a result of the Nasdaq-100 inclusion.

Bitcoin has rallied in recent weeks as U.S. President-elect Donald Trump's victory heightened the crypto sector's hopes for easing regulatory roadblocks. Earlier this month, the digital asset catapulted above $100,000 for the first time.

"Management has shown no signs of slowing this (bitcoin-buying) down and are comfortable buying bitcoin in the $95K-$100K range," Bernstein analysts said.

The company held roughly 423,650 bitcoins bought for about $25.6 billion based on the average purchase price as of Dec. 8. The investment is worth around $42.43 billion, based on bitcoin's previous close, according to Reuters calculations.

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https://www.reuters.com/technology/microstrategy-secures-nasdaq-100-inclusion-after-bitcoin-fueled-stock-surge-2024-12-14/